Microsoft (NASDAQ:MSFT) has sent out press invites to a May 20 event, with official tag line of "Join us for a small gathering." That could possibly hint that Microsoft will unveil its long-rumored Surface Mini tablet. The smaller device has reportedly been in development for nearly two years, and rumors of its launch circulated last year. Last September, Microsoft had supposedly delayed the launch until early 2014, which coincides with the current timing. The Surface Mini is expected to feature a 7.5 inch display with a Qualcomm Snapdragon processor and run Windows RT.
This all coincides with previous reports that Microsoft has cut its licensing fee on smaller devices that retail for $250 or less. That move is indication that Microsoft is targeting the smaller-sized tablet segment in numerous ways. It can incentivize third-party OEMs with discounts while launching first-party device. Overall, Surface remains a very young but growing business. Last quarter, Surface revenue jumped 50% to $500 million, but was still unprofitable as Microsoft lost $45 million on Surface sales.
In this segment of Tech Teardown, Erin Kennedy discusses the rumored Surface Mini with Evan Niu, CFA, our tech and telecom bureau chief.
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Erin Kennedy has no position in any stocks mentioned. Evan Niu, CFA owns shares of Qualcomm. The Motley Fool owns shares of Microsoft and Qualcomm. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.