We previously heard speculations that Microsoft and its partners were preparing Windows tablets with diagonals smaller than 10 inches and now everything comes full circle as the MS CFO confirmed the info. Rumors about a Surface 7 inch tablet were already present in the news for some weeks now…

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It appears that Microsoft is expanding its reach, since speculations also detailed a possible Windows Phone phablet recently. Microsoft CFO Peter Klein recently hinted at the smaller tablets during a recent earnings call with investors. He said that some of the companies that have partnered with Microsoft to develop tablets have created smaller and cheaper devices.

The comment comes just a day after Intel’s CEO said that the future holds Atom-based $200 slates with Windows 8. Of course, nobody wants a Windows tablet now, because it’s big, bulky and expensive, but when it’s $200 and comfy to use, will the preferences change? I find that hard to believe, but let’s see how this plays out.