Microsoft Corp. is developing a new lineup of Surface tablets, including a 7-inch version expected to go into mass production later this year, The Wall Street Journal reported, citing people familiar with the company's plans.

Microsoft executives felt they needed to keep pace with the growing popularity of smaller tablets like Google Inc's 7-inch Nexus and the 7.9-inch iPad Mini introduced by Apple Inc last October, one person told the paper. ()

Microsoft declined to comment to the Wall Street Journal. The company could not immediately be reached for comment by Reuters outside of regular U.S. business hours.