Microsoft Planning Low-Cost Surface Line to Compete With Apple's $329 iPad

As Apple's iPad and Microsoft's Surface continue to compete in the tablet market, a new report out today by Bloomberg claims that Microsoft is planning its next tablet line to be lower-cost in an effort to attract people to Surface products who aren't interested in the more expensive Surface Pro. The move is directly aimed at competing with Apple's recently launched $329 iPad, and could see Microsoft debut the devices as soon as the second half of 2018.

According to people familiar with the company's plans, the tablets will be priced at around $400, so they would still be more expensive than Apple's cheapest options. They will be the first Surface devices to adopt USB-C and rounded edges "like an iPad," instead of the square corners of the current devices. Storage tiers will include 64GB and 128GB, as well as LTE options, and the devices will feature 10-inch screens.

microsoft new surface pro

The Surface Pro

In an effort to make the tablets 20 percent lighter than the high-end $799 Surface Pro, Microsoft is believed to sacrifice battery life by as much as "four hours fewer" than the current generation (13.5 hours for Surface Pro). Not much is known about the insides of the upcoming tablets, but the people said that Intel will supply the main processor and graphics chips.

The devices will continue to have the kickstand for upright typing and video watching seen in current Surface models, and they will run Windows 10 Pro. Ultimately, the company is trying to enter the low-cost market again after previous attempts with the Surface RT in 2012 and the Surface 3 in 2015, which both started at $499 and performed poorly in comparison to the growing Surface Pro line.

Microsoft has struggled to find a high-volume hit with the Surface devices as well as to introduce a flow of new choices to keep growth steady. In the fiscal year that ended last June, Surface revenue declined 2 percent as the company faced lower volume sales owing to an aging Surface Pro line. Revenue rose 32 percent in the most recent quarter, indicating new interest in Microsoft’s hardware.

Apple sold about 44 million iPads that generated almost $20 billion in revenue during the past four quarters. Microsoft’s entire Surface hardware business produced $4.4 billion for the same period.

Microsoft is believed to be looking at Apple's education-focused iPad launch from earlier in 2018, and the new Surface models "could likewise appeal to students and teachers," as well as schools that look into buying cheap tablets in bulk. With the cheaper Surface, the company is planning low-cost updates to its keyboard cover, stylus, and mouse. Prices haven't yet been pinpointed, but as a comparison the current keyboard cover runs for $160.

Apple's low-cost iPad includes Apple Pencil support, an A10 Fusion chip with 64-bit desktop-class architecture, a Retina display, enhanced cameras, and advanced sensors with a gyroscope and accelerometer, which fuel powerful augmented reality apps through ARKit. Although the iPad is normally $329 for consumers when not on sale, Apple sells it at $299 to schools and says that the tablet was built for mobility and durability for students, sporting an aluminum unibody construction.

Related Roundup: iPad
Buyer's Guide: iPad (Buy Now)

Top Rated Comments

dmylrea Avatar
35 months ago
I don't really see iPad and Surface as competing products. A small memory iPad is perfectly usable for most things people use cheap iPad's for (media, email, web, social). A small memory Surface will just be awful for what people use a real computer for.

Also interesting how MS will have a new model this year, but it takes Apple 5 years to get anything designed and out the door.
[doublepost=1526473997][/doublepost]

Not sure why anyone would buy this crap. The surface is an awful tablet and a mediocre laptop.

Careful...your Apple bias is showing with ridiculous statements like this.
Score: 28 Votes (Like | Disagree)
Gorms Avatar
35 months ago
"They will be the first Surface devices to adopt USB-C and rounded edges "like an iPad," instead of the square corners of the current devices."

I'm kinda surprised they'd lose the square edges, not only is it an industrial design separator that visually marks the device as "not being an iPad" from any distance. But also, it works well with the actual square edge UI of Windows.
Score: 26 Votes (Like | Disagree)
PhoneI Avatar
35 months ago
Not sure why anyone would buy this crap. The surface is an awful tablet and a mediocre laptop.
Score: 19 Votes (Like | Disagree)
H2SO4 Avatar
35 months ago

Not sure why anyone would buy this crap. The surface is an awful tablet and a mediocre laptop.

Let's suppose you want a tablet, have to run the full version of Microsoft Office and only have $400. Is that reason enough for someone to want to buy this crap?
Score: 14 Votes (Like | Disagree)
TComm Avatar
35 months ago
I am buying a Surface Book. At least their keyboard works.
Score: 14 Votes (Like | Disagree)
mattopotamus Avatar
35 months ago
The problem is, low budget machines running Windows are really really bad. I just cannot see a $329 surface running anywhere near as efficient as the iPad. Hopefully they prove me wrong, because I would definitely buy one for work.
Score: 12 Votes (Like | Disagree)

Top Stories

iphone 5s black slate

Images of Unreleased iPhone 5s in Black and Slate Shared Online

Sunday January 17, 2021 9:47 am PST by
Twitter user @DongleBookPro has today shared images of a prototype iPhone 5s in an unreleased Black and Slate color. The iPhone 5s was launched in September 2013. The device featured Touch ID, a 64-bit processor, and a True Tone LED flash for the first time. Other new features included a five-element lens with an f/2.2 aperture, a 15 percent larger camera sensor, Burst Mode, and Slo-Mo...
iP12 charge airpods feature 2

Hidden iPhone 12 Hardware Feature Could Still be Unlocked

Thursday January 14, 2021 2:51 am PST by
All iPhone 12 and iPhone 12 Pro models purportedly have a hidden reverse wireless charging feature, according to an FCC filing. The feature has not yet been activated, but could yet be unlocked for an upcoming Apple accessory. The FCC filing suggests that iPhone 12 models contain the hardware for Wireless Power Transfer (WPT) to accessories: In addition to being able to be charged by a...
Top Stories 43 Feature

Top Stories: MacBook Pro, iMac, Mac Pro, and iPhone Rumors, Best of CES 2021

Saturday January 16, 2021 6:00 am PST by
This week was sure a busy one in the Apple world, with a flurry of announcements out of CES early in the week followed by a rash of Mac- and iPhone-related rumors later in the week. The new rumors this week included details on updated MacBook Pro, iMac, and Mac Pro models, as well as a few other tidbits, so make sure to read on below to get caught up! Kuo: New MacBook Pro Models to...
foldable iPhone concept feature

Apple Testing In-Display Fingerprint Sensor for iPhone 13, Foldable iPhone Also in the Works

Friday January 15, 2021 1:46 pm PST by
Apple has started "early work" on an iPhone that has a foldable display, according to a new report from Bloomberg's Mark Gurman. Though testing of a foldable iPhone has begun, Apple has not committed to releasing a device that has a foldable display. Development has not yet expanded beyond a display and Apple does not have full foldable iPhone prototypes in its labs. Like foldable...
16inchmacbookpromain

Kuo: New MacBook Pro Models to Feature Flat-Edged Design, MagSafe, No Touch Bar and More Ports

Thursday January 14, 2021 9:32 pm PST by
Apple is working on two new MacBook Pro models that will feature significant design changes, well-respected Apple analyst Ming-Chi Kuo said today in a note to investors that was obtained by MacRumors. According to Kuo, Apple is developing two models in 14 and 16-inch size options. The new MacBook Pro machines will feature a flat-edged design, which Kuo describes as "similar to the iPhone 12" ...
macbook pro flexgate

Apple Extends 13-Inch MacBook Pro Backlight Repair Program

Sunday January 17, 2021 10:31 am PST by
Apple this week extended its worldwide 13-inch MacBook Pro Display Backlight Service Program, authorizing coverage for eligible notebooks for up to five years after the original purchase date or up to three years after the start date of the program, whichever is longer. The previous cutoff was four years after the original purchase date. Apple launched the program on May 21, 2019 after...
iphone x camera close

iOS 14.4 Will Introduce Warning on iPhones With Non-Genuine Cameras

Thursday January 14, 2021 8:07 am PST by
In the second beta of iOS 14.4 seeded to developers and public testers this week, MacRumors contributor Steve Moser has discovered code indicating that Apple will be introducing a new warning on iPhones that have had their camera repaired or replaced with aftermarket components rather than genuine Apple components. "Unable to verify this iPhone has a genuine Apple camera," the message will...
Apple TV Ray Light 2 Triad

Apple Extends Free Apple TV+ Trials Until July

Friday January 15, 2021 10:50 am PST by
Apple is once again planning to extend its free Apple TV+ trial subscriptions, this time until July. When Apple TV+ launched in November 2019, Apple offered free Apple TV+ subscriptions to those who purchased a new Apple device in or after September 2019. Those free subscriptions were set to expire in November 2020, but in October 2020, Apple announced that it was extending free trials...
mac pro mini feature

Apple Working on Two New Mac Pro Desktops, One of Which Will Be Reminiscent of Power Mac G4 Cube

Friday January 15, 2021 10:23 am PST by
Apple is developing two versions of the Mac Pro to succeed the Mac Pro that was first released in December 2019, according to a new report from Bloomberg. The first updated Mac Pro is a direct successor to the current Mac Pro and it will use the same design. It may also be equipped with Intel processors rather than Apple silicon chips, and it could be one of the sole machines in the Mac...
macbook pro magsafe

MagSafe is Coming Back to the Mac: A Look Back at Apple's Original Magnetic Charging Technology

Friday January 15, 2021 12:16 pm PST by
Surprise late night rumors last night provided us with our first in-depth look at what we can expect from the new MacBook Pro models that are coming in 2021, and there are some significant changes in the works. Along with additional ports, a new flat-edged design, and the removal of the Touch Bar, Apple's updated MacBook Pro machines will readopt MagSafe. MagSafe in the 2021 MacBook Pro...