Microsoft has used an investor call to confirm that it is working on smaller Windows-powered devices, most likely tablets. A 7-inch Surface device to rival the Nexus 7, Amazon Kindle Fire HD and iPad mini (to an extent) has been rumoured for a few weeks, and the company has responded positively.

The company’s chief financial officer, Peter Klein, told investors that Microsoft is currently working with OEMs on “a new suite of small touch devices powered by Windows”. He also claimed that these tablets would be released at “competitive price points”.

Previously, The Wall Street Journal had claimed that its “people familiar with the company’s plans” said a 7-inch Surface device was in the works.

Research firm IDC reported that a quarter of all tablets shipped in all tablets shipped in the three months leading up to Christmas were 8-inches or smaller, so it’s becoming an important and lucrative field for Microsoft to enter.