Although fans are already expecting a Surface Book 2, speculations suggest that Microsoft may be working on a new Surface product, too.

According to Digitimes, the Redmond-based tech giant is working on an all-in-one desktop PC dubbed the Surface AIO. Reportedly, the new product in the Surface lineup is slated for the third quarter release at the earliest. The new AIO is said to be Microsoft's answer to the iMac, which will reportedly be refreshed later this year.

While the Surface AIO is a new product, the industry follower indicates that as per industry sources, the Surface AIO is an alternative to the Surface Book 2, which is originally thought to be rolling out this year. Instead, the Surface Book 2 is said to come out in early 2017. Microsoft has yet to confirm it, although the 2017 release of new Surface products has already been previously reported. According to speculations, Microsoft is still waiting for the mass production schedule of the new Intel Kaby Lake chipsets, so it has to set back the original late 2016 reveal for its new Surface products.

However, since the Surface AIO is said to be released this year, it may be a hint that the new all-in-one PC will not be using Kaby Lake processors, but the current Sky Lake chipsets instead.

As for the Surface Book 2, rumors say that it will come out together with the Surface Pro 5, and will feature heavy upgrades and improvements over its predecessor. Aside from the new, seventh-gen Kaby Lake processor, the Surface Book 2 is also said to come with a lighter and thinner body, and 4K display. Meanwhile, tweaks and improvements on the new Surface Book follow-up will add faster speeds and high performance levels for its features, like longer battery usage and better power management.