That Microsoft upset its OEM partners by producing a tablet by itself is not really news-- so what Acer CEO J.T. Wang tells the Financial Times about the Surface only provides further confirmation.

Wang believes the Surfaces will be "negative for the worldwide ecosystem" causing other vendors to "take a negative reaction." He nearly begs Microsoft to "...think it over... please think twice."

"If Microsoft is going to do hardware business, what should we do? Should we still rely on Microsoft, or should we find other alternatives?" Wang continues.

Back in June reports emerged on how Microsoft kept the Surface a closely guarded secret, letting other vendors know about the tablet only 3 days before the official launch. A bit like what Apple does, basically. But can it really do that? After all, while Apple works by itself (and can really do whatever it wants) Microsoft still depends on its OEM partners around the globe.

The Microsoft 10-K report filed on July 2012 admits the Surface might have upset OEM partners, saying "our Surface devices will compete with products made by our OEM partners, which may affect their commitment to our platform."

Then again, with tablets booming (even some of the non-iPad ones) while PCs remain flat, can Microsoft afford to ignore Windows-based tablets? Also, can it really trust its partners (HP, Acer, Dell, etc) with its tablet dreams? We will only know the success (or lack thereof) the Surface will bring come launch day on October 2012.

Go Acer Chief Takes Aim at Microsoft Surface (FT.com, registration required)

Go Microsoft 10-K Form Filing

Will Apple join Google and Amazon in the fight for the lower end of the tablet market? According to Bloomberg, Apple may announce "a smaller, cheaper iPad" sometime around October 2012.

If the Bloomberg sources are correct, the "new" iPad will be similar to the Nexus 7 or the Kindle Fire-- a 7-8" device lacking a Retina display, smaller than the standard 9.7" iPad size. It would also (perhaps obviously) cost less.

Never mind the late Steve Jobs was skeptical (to say the least) of small tablets, saying the iPad size is the minimum for the best user experience... and that small iPad rumours have been around since the very first Apple tablet hit the market.

Currently, the chief Apple competitors are going for the opposite ends of the market. Microsoft's Surface tablets might cost even more than an iPad ($500+) as the company targets the ultrabook and enterprise markets. Meanwhile the newly revealed Asus-made Nexus 7 costs around $250.

Apple however has one big advantage (other than an immense app library) over both Microsoft and Google-- retail. So far Google sells Nexus 7 tablets exclusively through the Google Play online store, and Microsoft plans to sell Surface tablets through its 20-strong store chain. In comparison Apple owns over 360 retail outlets.

Go Apple to Plan Smaller iPad to Vie with Google Nexus (Bloomberg)

Yet another industry giant enters tablet space-- Google reveals the Nexus 7 at the I/O Developer Conference, a 7-inch Google-branded device carrying an other fresh announcement, Android version 4.1 (aka Jelly Bean).

However, unlike the high-end Microsoft Surface, Google's take on tablets (a co-development with Asus) appears more humble. With a $199 price point, the Nexus 7 aims for the lower end of the market where the Amazon Kindle Fire currently dominates.

The 7-inch display handles 1280x800 resolutions with a 178-degree viewing angle, while the tablet carries a Tegra 3 quad-core processor, 12-core Nvidia GPU and 1GB of RAM. It also supports bluetooth and NFC connections and includes a front-facing camera.

The second biggest I/O announcement is the latest Android version. Code named Jelly Bean, Android 4.1 includes a number of improvements aimed at polishing what already lies within version 4.0 (Ice Cream Sandwich).

Is Microsoft going to attempt the tablet making game? According to The Wrap, Microsoft will announce its entry in new hardware territories at a "secretive event" in Los Angeles very soon. 

AllThingsD confirms the rumour through its "insider" sources-- or at least the part involving an event with a tablet-centric agenda. 

Should Microsoft actually start making tablets, what kind of device will it produce? The most predictable bet would be an ARM-powered iPad rival using Windows RT. Or maybe would it be a cheaper, Amazon Kindle Fire beater? Or a middle ground, aiming towards the enterprise market RIM's PlayBook failed to capture...

Other analysts speculate the next Microsoft tablet will actually carry Windows Phone. The reasoning behind this? The documents behind the recent Microsoft joint venture with Barnes & Noble mention Windows Phone a number of times, as well as make reference to a "Microsoft Reader."

Such a Windows Phone device would use a smaller form factor, with a 7-inch display rather than 10-inch. More fuel to the speculation fire-- maybe such a device will be Nokia-made and Microsoft-branded? 

A Microsoft-branded Windows Phone 7-inch tablet would also offend Microsoft's OEM partners less, what with their already being busy making portable Windows 8 devices... 

In other words, all we have so far are a lot of rumours and potential hot air. We will know more (or not) once the rumoured Microsoft announcement date, June 18 2012, rolls on. 

Go Microsoft Manufacturing Tablet to Rival Apple iPad Says Insider (The Wrap)

Go Microsoft is Doing its Own Tablet. How Do You Like Them Apples? (AllThingsD)