The Surface tablet continues to struggle and the idea to take down the iPad failed so with Surface Pro 3 the plan has changed.
Source?
The new Tablet now has a higher price ($799 vs $499) and is aimed at corporate
customers.
As someone else pointed out, the new tablet is a successor to the Surface Pro 2 and Surface Pro, which have always been aimed at professionals and power users. The new Surface Pro 3 is in fact
less expensive than both of its predecessors.
It also includes a crappy i3 processor instead of the i5 that the Surface Pro 2 had.
At the lower price, it also features a
12 inch display instead of a comparatively tiny 10 inch display. Apple's smallest laptop has a 11.6" display for a reason. Anything smaller is simply not usable for serious work with common desktop applications (for most people, anyway).
You can get a i5 or i7 but the prices goes way up.
The cheapest i5 version costs as much as the entry level Macbook Air 13. (The Surface Pro 3 has a slightly smaller, but much, much better display. It also features twice as much as memory at this price. The Macbook Air's 4 GB look fairly dated in 2014.)
For people who do not mind the Metro user interface, which does not include me, the Surface Pro 3 is valid alternative to a Macbook Air or similar Windows-based Ultrabooks.
Looks like the regular Surface RT tablets will be discontinued thus Surface will now start at $799 instead of $499.
Again, source? This sounds more like wishful thinking than anything else. The iPad mini outsold the full-size iPad in 2013. On amazon.com, the best-selling Android tablets are all 7 inch models. Clearly, there is a huge demand for lower-cost, smaller, highly portable tablets in the 7 to 8 inch range.
The only way to compete in this space in terms of price and user experience would be to release a new Surface RT tablet, which is exactly what many media outlets were expecting to see at Microsoft's recent press event. The assumption that Microsoft will just leave this huge market niche to Android and iOS is not plausible.