Microsoft working on 'smaller' 7-inch Surface tablet

Software giant Microsoft is planning to launch a 7-inch tablet to take on rivals such as Apple, a report has said.

A report by the Wall Street Journal said the US-based company plans to launch a smaller version of its Surface tablet later this year.

Sources told the Journal that making a small tablet wasn't an original part of Microsoft's strategy, but that the company is seeking to adapt to a changing market, the Sydney Morning Herald reports.

As Microsoft rolled out its first tablet, the 10.6-inch screen Surface RT, in October, Apple, Google and Amazon launched much smaller tablet computers.

Apple released the 7.9-inch iPad mini, Google put out the 7-inch Nexus 7 and Amazon updated its 7-inch Kindle Fire tablet with an HD version.