Bloomberg reports that Microsoft is going to release a $400, 10-inch, Intel-powered Surface tablet in the second half of the year, in a renewed effort to take on the iPad.
This represents a return to a strategy the company has tried before. The original ARM Surface RT and Surface 2 and the Intel-equipped Surface 3 were all attempts to offer a low(ish) priced tablet operating in the same approximate market as the iPad. None saw any great success, however, and the Surface 3 was discontinued in late 2016. The winner in the Surface line has been the more expensive Surface Pro series: Microsoft found a formula that worked with the Surface Pro 3 and has seen steady sales and a proliferation of copycat devices.
The problem with Surface Pro is the price: the current-generation Surface Pro starts at $799. This makes it a hard sell for markets such as education, where it's going up against systems such as Apple's new $329 iPad (sold to schools for $299), and various Chromebooks running Google's Chrome OS.
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