HTC Corp. has reportedly scrapped plans to make a full-sized tablet that would run the Windows 8 operating system. An anonymous source told Bloomberg the project was scrapped due to a weak market for tablets that run the Windows 8 operating system.

In an e-mail response sent to Bloomberg News, HTC declined to comment on the matter saying simply, "We don't comment on rumors or speculation." Microsoft spokesperson Greg Chiemingo also declined to comment.

The company still plans to go through with the release of a 7-inh tablet that will run the Windows 8 later this year. Microsoft and its partners have released a total of five Windows RT devices since Oct. of this year.

According to Bloomberg News, HTC is coping with poor sales, market share declines and the fact that Microsoft Windows RT sales have been lower than expected with just 200,000 tablets sold in the first quarter, according to IDC research. HTC is thus tightening its belt.

According to the inside source, a tablet with a 12-inch screen was too expensive. HTC was worried that it would have to charge consumers an astronomical amount in order to make production of the device worth it.

The smaller tablet is expected to yield lower costs and a higher demand. The new tablet is expected to release between Sept. and Oct. IDC research also shows that the tablet market will spike by 59 percent, or 229.3 million and overtake the computer market sometime in 2015.

However, tablets don't seem to be HTC's main concern these days. The HTC One smartphone seems to be getting a lot of the company's attention. The smartphone, which operates on Google's Android mobile software, announced Friday that it would be selling a $599 version of the phone that would run a new, Google optimized version of the Android OS.