Lenovo, now the world's second biggest PC maker by shipments, seems to be the latest hardware manufacturer working on an ARM-based Windows RT tablet. According to a Wall Street Journal report citing "people familiar with the matter," Lenovo teamed up with Nvidia to create its Windows RT device.

Moreover, the WSJ indicates that the device will be convertible, "with a keyboard that flips around to turn the product into a tablet."

Lenovo is the third manufacturer known to be working on a Windows RT tablet. While Samsung and Dell are also rumored to be planning their own Windows RT-based tablets, Microsoft and Asus are the only two companies to have officially announced products so far.

Nvidia is one of the three original licensees working on Windows devices. Previous reports stated that Microsoft has been working with various chipmakers and OEMs in an effort to limit variations based on chipset and device manufacturer. Nvidia has reportedly teamed up with the Chinese PC maker for this reason, providing its ARM-based chip to Lenovo.

Microsoft is expected to lift Windows RT licensing restrictions in January, which will likely make the new operating system available to other hardware manufacturers as well. Should this prove to be true, consumers might see more Windows RT tablets at the Consumer Electronics Show (CES) 2013.

HP initially considered creating a Windows RT-based device, but eventually decided to focus its efforts on a business Intel-powered Windows 8 tablet. Lenovo has also recently unveiled its business-centric ThinkPad 2 tablet, which runs Windows 8 and uses an Intel chip. The newest version of Windows, however, will come as the first to work with chips based on ARM architecture, not just those from the usual partners - Intel and AMD.

"Microsoft and system makers are turning to makers of ARM-based chips used in most smartphones and tablets - to make inroads against Apple Inc's iPad, which continues to dominate the market," notes the Journal. In order to compete with the market-leading iPad, however, Windows tablets not only need to be powerful, but sport an attractive price tag as well.

Microsoft has not yet detailed pricing for its own-brand Surface tablet. The software giant will unveil its Surface for Windows RT tablet on Oct. 26, at the same time Windows 8 launches. Pricing is expected to be competitive with a comparable ARM tablet, but no official word is available yet.