Microsoft unveils cheaper, smaller-screen version of its tablet

Technology giant Microsoft has unveiled a smaller-screen version of its Surface tablet computer aimed at cutting Apple and Samsung's stranglehold over the market.

The new device comes with a screen of 10.8 inches, making it smaller than the earlier 12-inch screen versions of Surface, and starts at US$499 (A$654) for US customers.

Microsoft touts the Surface as a tablet that can replace a laptop and hopes it can compete with the iPad and Galaxy tablets offered by its two main rivals.

Samsung's tablets range from 7.0 to 12.2 inches while Apple's latest iPads range from 7.9 inches to 9.4 inches.   

The new Surface 3 will cost less than the US$799 (A$1,048) starting price for the Surface Pro 3 introduced last year, but will also have a less powerful processor and lack some other features.

"Surface 3 brings what customers love about Surface Pro 3 to more people, delivering the premium design and productivity of Surface in a more affordable device," said Panos Panay, who heads the Surface division for Microsoft.

The new Surface will have an optional feature not available on its predecessors -the ability to connect to wireless carriers with a high-speed connection.

With sales topping US$1 billion for the first time in the last quarter of 2014, analysts said the tablet appeared to be swinging to profitability.

With AFP.