Microsoft is reportedly planning to release a line of lower-cost Surface tablets later this year, aiming at Apple's iPad.
The new tablets will feature 10-inch screens, they will have rounded edges like an iPad and they'll also include USB-C connectivity for charging and syncing, Bloomberg reports, adding that the new tablets will not cost more than $400.
The tablets are expected to be about 20 percent lighter than the high-end models, but will have around four hours fewer of battery life. They will be powered by Intel processor and graphics chips, the report added.
Like the Surface Pro, these models won't be bundled with the company's keyboard cover. Microsoft is preparing less-expensive versions of its keyboard cover, stylus and mouse.
The company is planning multiple models, including versions with 64 gigabytes and 128 gigabytes of storage and models that can connect to LTE cellular networks.
Microsoft, declined to comment.
Microsoft's Surface devices are not selling as well as the ocmpany expected. In the fiscal year that ended last June, Surface revenue declined 2 percent as the company faced lower volume sales owing to an aging Surface Pro line.
Apple sold about 44 million iPads that generated almost $20 billion in revenue during the past four quarters. Microsoft's entire Surface hardware business produced $4.4 billion for the same period.
Apple's latest iPad model launched in March for $329, but it is geared toward education users.
The current professional-oriented Surface Pro lineup starts at $799.