Microsoft Reportedly Upping the Ante on Tablets with an 8-inch Surface in June

Microsoft Corp. MSFT plans to launch an 8-inch Surface tablet in June, according to a report in DigiTimes. The same report also hints at a 10.x-inch model sometime in Q3.

All this is part of Microsoft’s push to gain a stronger share of the tablet market. IDC statistics indicate 49.2 million tablets were shipped globally during the first quarter of 2013. Of those Apple, Inc.’s AAPL share was 19.5 million units, Samsung shipped 8.8 million units, and Amazon sold 1.8 million.

Microsoft hopes to break 1 million with its two new tablets, which is an optimistic goal given the fact it only shipped 900,000 of its existing units in Q1.

According to DigiTimes, the 8-inch Surface will use touch panels supplied by Samsung Electronics and processors developed by Nvidia. ODM Pegatron will produce the tablets.

CNET reported that there has been no word on pricing for the 8-inch Surface, although rumors have circulated about a $399 target.

The new 10.x model will replace the existing 10.6-inch Surface and is expected to be slightly smaller according to sources referred to by DigiTimes.

Meanwhile, according to ZDNet, Surface Pro pricing and release dates have been confirmed for UK and Europe. The high-end tablet, laptop hybrid is set to debut before the end of May in most European markets. In the UK, the Surface Pro will cost around £719 ($1094) for the 64GB device.

The Surface Pro will roll out in Sweden, the Netherlands, Portugal, and elsewhere after the UK and Germany debuts.

The new models, along with the European rollouts of the Surface Pro are all part of Microsoft’s strategy to gain market share in the fastest growing segment of the computing industry today.

Multiple sources, including Venture Beat have said that 2013 would be the first time in history that more tablets than notebooks would be sold. And, it will only get worse for PC makers.

By 2017, according to market researcher NPD, Venture Beat said, consumers will purchase up to six times as many tablets as laptops.

NPD senior analyst Richard Shim said, “The mobile PC industry is undergoing significant change. The rapid rise and establishment of white box tablet PCs … is putting pressure on traditional notebook PCs … resulting in cannibalization by tablet PCs.”

No wonder Microsoft wants to become a bigger player in that game.

Microsoft shares were trading at $34.14 in early trading Thursday, up less than a percent. Apple, meanwhile, was selling for $432.58, up $3.60, also less than a percent.

At the time of this writing, Jim Probasco had no position in any mentioned securities.