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The tech giant could release a line of cheaper Surface tablets as a way to better compete with the iPad, Bloomberg reported, citing sources close to the situation.

The Surface tablet will feature a 10-inch screen, which is similar to Apple's iPad and smaller than Microsoft's Surface Pro laptop range.

Costing about Dollars 400 per unit, the new tablets will feature 10-inch screens and rounded edges like iPads.

The new line is also expected to be about 20 per cent lighter than the current Surface models but will have its battery life cut by four hours.

The Surface Hub 2 is part of Microsoft's ecosystem of consumer products, which includes the Surface Pro tablet, so the new device can run the same software suites as a standard computer, such as Microsoft Office and Adobe Photoshop.

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One version of the upcoming Surface will have 64gb storage, while another model will have 128gb worth of storage, Bloomberg said. It's unclear if Windows 10's "S Mode" will be enabled by default with the tablet, though this makes sense given it's reportedly being positioned as a budget device. Experts attribute the new Surface screen is 10 inches with Full HD resolution+, and a processor and graphics from Intel and 4 GB of RAM and 64/128 constant.

In fact, Microsoft's video ad for the Surface Hub 2 really looks like something out of sci-fi film, since it does give an vast feeling of several futuristic scenarios coming to reality. The Surface 2 and Surface 3 were also priced lower than what's available today, but they also struggled to gain traction. But the compact design and modest price tag indicate that the line is designed for less demanding applications than the Surface Pro, which is favored by enterprise users. However, it will also offer models with LTE.

The last time Microsoft made smaller-sized tablets, they weren't very successful. Would you be interested in a cheaper Surface tablet?

Unfortunately, just like higher-end Surfaces, these devices won't come with a keyboard cover, though Microsoft is planning cheaper versions of the keyboard, mouse and stylus for the education market.