A sign is highlighted on the wall during the launch event of the new Microsoft Surface Pro 3 in New York May 20, 2014.
A sign is highlighted on the wall during the launch event of the new Microsoft Surface Pro 3 in New York May 20, 2014. Microsoft Corp on Tuesday unveiled a larger but lighter version of its Surface Pro tablet as it ramps up efforts to make an impact on the mobile computing market and counter the popularity of Apple Inc's iPad and MacBook Air laptop. Reuters/Brendan McDermid

The Surface Pro 3 tablet that was released recently is failing to do well in the market, states Digitimes citing upstream supply chain. It further adds that Microsoft is planning to cancel the Surface tablet line as the devices released so far have failed to meet their expectations.

BGR mentions that Microsoft has invested a lot in advertisements that show how the Surface tablets are better than the MacBook Air or iPad from Apple. Since the Surface Pro tablets are hybrid of laptop and tablet, Microsoft manufactured the Surface devices to take on both laptops and tablets powered with Android and iOS.

PhoneArena claims that Microsoft had many expectations from the Surface slates and because of the popularity of large-screen smartphones, but the sales of Surface series tablets have gone down. The source claims the first gen Surface brought $1.7 billion losses to the software giant. Afterdawn reports that this time Surface Pro 3 sales may not even reach 1 million mark. The tablet is mainly aimed towards enterprise users.

PhoneArena adds that Microsoft has lost confidence in the Surface series tablets because the company had canceled the arrival of Surface Mini tablet when the Surface Pro 3 was released last May of this year. Digitimes claims the software giant is unable to perform well in the hardware business. Along with Surface slates, the Zune media player and Zune Marketplace have failed to achieve success. Even the demand for Windows Phone smartphones and Xbox One is quite weak.

Microsoft has responded on the news about the company plans of eliminating Surface tablets. According to The Verge, through an email sent out by the CEO of Microsoft, Satya Nadella, he has expressed that the company is quite committed towards building Surface tablets for large and small businesses.

Microsoft has even started to proclaim that the Surface Pro 3 Type Covers and other accessories will be compatible with future Surface Pro tablets. The Verge adds that this can be a clear indication that Microsoft could launch a Surface Pro 3 successor in the following year. From today, Microsoft has begun a new "laptop replacement offer" that allows the user to get a complete package of the Surface Pro 3 tablet with Type Cover and dock station with a discount of up to $150.