Microsoft unveiled its first line-up of tablets, Surface RT and Surface Pro, in June 2012 and released the Surface RT in Oct. 2012. The company's Surface Pro tablet was delayed and finally hit the U.S. and Canadian shelves in February this year and rumors suggest that the next-generation RT tablet is on its way and should cost just around $299.
A DigiTimes report hints that Microsoft is all set to launch a smaller 8-inch tablet, probably running on RT operating system, in June this year.
The DigiTimes report cites sources in the supply chain and says "The new Surface RT is manufactured by Pegatron Technology, using Nvidia's Tegra processor. However, because of the first-generation Surface RT's weak sales, and fierce competition in the 7- to 8-inch tablet market, most market watchers are conservative about the second-generation Surface tablets' performance."
Rumors also suggest that the next-generation Surface RT tablets may have a price tag of $249 to $299. The current 32GB version of the Surface RT, which has a 10.6-inch display, has a price tag of $499 and the 64GB costs $599. If rumors of a smaller and cheaper Surface RT are to be believed then the upcoming tablet may give stiff competition to other tablets in the smaller tablet segment.
The 7.9-inch iPad mini which has a substantial share in the smaller tablet industry has a price tag of $329 for the 16GB version. Apple has put a price tag of $429 on the 32GB version of the iPad mini and the 64GB variant of the tablet is priced at $529. The Surface RT has been received well in the tablet space and a smaller and cheaper Surface RT tablet may appeal to even more customers.
Microsoft has not confirmed the price and the release information of the next-gen Surface RT tablet, so until then we have to take the rumors with a pinch of salt and wait for an official announcement from Microsoft.