Microsoft Corporation (NASDAQ:MSFT) will launch Surface Mini tablets poweredby  QUALCOMM, Inc. (NASDAQ:QCOM) processors, according to a report from Bloomberg. The software giant will soon roll out its latest tablets which will supposedly take on the iPad Mini. Bloomberg reported that a Qualcomm-powered Surface would be the first such product. Until now, Microsoft has integrated NVIDIA Corporation (NASDAQ:NVDA) and Intel Corporation (NASDAQ:INTC) processors into its Surface and Surface Pro models.

Microsoft Surface Mini

Intel will also power new Surface models

Apart from QUALCOMM, Inc. (NASDAQ:QCOM)’s  new Surface models, which are expected to launch on May 20, there will also be some powered by Intel Corporation (NASDAQ:INTC), according to Bloomberg. Intel already powers the Surface Pro 2 with its Haswell chip and offers the more powerful and efficient quad-core Bay Trail Atom processor for tablets.

In addition, Paul Thurrott of Windows IT Pro reports that the rumored Surface Mini tablet will come with Stylus support and integration of OneNote, which is Microsoft’s note-taking software. Bloomberg also reported that the tablet will be available with a click-in cover which will support multi-position kickstands.

Also Microsoft Corporation (NASDAQ:MSFT) may launch new colors for the Surface Mini. Reports claim that the Surface Mini will have an 8-inch display screen running on Windows 8. Recently accessory manufacturer Vostrostone rolled out its smart cover and Bluetooth keyboard for the supposed Surface Mini 8-inch slate on Amazon. Also a report from ZDNet states that CEO Satya Nadella will launch the gadgets on May 20.

Microsoft needs to play smartly

Nokia Corporation (ADR) (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V)’s Lumia 2520 is the only Windows RT-based tablet using a QUALCOMM, Inc. (NASDAQ:QCOM) processor, so these Surface tablets would be the next. The Qualcomm chip in the Lumia 2520 supports 4G / LTE capability on both Verizon and AT&T, and the new Surface Mini is also expected to be based on RT. Windows Surface tablets are not integrated with mobile broadband, however, in March, the company released a Surface 2 model with LTE solely on the AT&T network.

Microsoft Corporation (NASDAQ:MSFT) will have to change its outlook, cut the size of its tablets and launch a mini version if it wants to grab market share. Apple Inc. (NASDAQ:AAPL) launched the iPad Mini two years back, and all Android-powered tablets are small in size. Additionally, cost will play an important role with a range of sub-$300 mini Android and Windows-based tablets already available in the market.