Microsoft is developing a tablet personal computer (PC), Courier, a move that could put the software major in competition with the planned tablet PC from Apple.

A tablet PC generally refers to a laptop which has a touch screen for operating the device, in place of a keyboard or mouse.

“It feels like the whole world is holding its breath for the Apple tablet. But may be we’ve all been dreaming about the wrong device. This is Courier, Microsoft’s astonishing take on the tablet,” technology blog Gizmodo said on Tuesday.

According to the report, the device is in the “late prototype” stage of development.

“The dual 7-inch (or so) screens are multi touch, and designed for writing, flicking and drawing with a stylus, in addition to fingers. They’re connected by a hinge that holds a single iPhone-esque home button,” the report noted.

Gizmodo said that until recently, the project was only known to the few engineers and executives working on it—Microsoft’s brightest, like Entertainment & Devices tech chief and user-experience wizard J. Allard, who is spearheading the project.

“Currently, Courier appears to be at a stage where Microsoft is developing the user experience and showing design concepts to outside agencies,” the report added.

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