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Is Microsoft Laying Groundwork for a Smaller Surface?

By Evan Niu, CFA - Apr 4, 2013 at 1:30AM

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Microsoft has to launch a smaller tablet if it wants to stay relevant. Windows Blue is set to pave the way for a smaller Surface when it's released.

With the very obvious consumer trend toward smaller tablets, Microsoft (MSFT 1.07%) has little choice but to release a smaller version of its Surface if it has any hopes of success. Apple (AAPL 1.62%) recently launched its iPad Mini in an admission that there is a market for smaller devices. Google's (GOOGL -0.21%) Nexus 7 has a hot seller among Android enthusiasts, and Amazon.com (AMZN 3.15%) was easily the first company to see major success with its 7-inch Kindle Fire. Windows Blue, which may be officially dubbed Windows 8.1, will lay the groundwork for smaller Windows tablets.

In the video below, Fool contributor Evan Niu, CFA, lays it out for investors.

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