Nokia is on track to launch a 10-inch tablet based on Microsoft’s new Windows 8 OS by year-end, according to sources at Taiwan’s DigiTimes.

The Finnish vendor – which already uses Windows Phone for its smartphones – is expected to outsource production of its first tablet to Taiwan’s Compal Electronics with the first batch of shipments to top 200,000 units, the sources revealed. The device is thought to be based on Qualcomm's dual-core platform and is due “in the fourth quarter of 2012 at the earliest.” Nokia declined to comment on the story.

According to a CNET report, Nokia is not the only vendor reportedly looking at a Windows 8-based tablet – despite the fact that the OS has not yet launched. The report notes that Dell, HP, Lenovo, Toshiba, Samsung, and HTC are also thought to be looking at using the platform for new tablet devices.

As is the case in the smartphone market, Microsoft is banking on its new OS becoming a third challenger in the tablets space to rival Android and Apple’s iOS (which powers the market-leading iPad).