Software giant Microsoft (MSFT) plans to unveil a version of its Windows operating system that runs on hand-held devices such as tablet computers.

Executives will debut the software at the Consumer Electronics Show in January, Bloomberg News reported without naming its sources.

The software is the first version of Windows that will run on ARM Holdings Plc (ARMH) technology. ARM chips feature in most smartphones, as well as in the Apple (AAPL) iPad.

The new version of Windows could help boost Microsoft's position in the market for tablet computers. Microsoft is the world's largest software company.

"They've got to come back with a product that's better than 'me too' and is equal if not better in features," Robert Breza, an analyst with RBC Capital Markets, told Bloomberg News. "A lot of tablets today are inferior to PCs."

Increase your money and finance knowledge from home

What are Penny Stocks

The lucrative and dangerous world of penny stocks.

View Course »

Small Cap Investing

Learn now to invest in small companies the right way.

View Course »