Microsoft’s (MSFT) $899 AI-Powered Surface Challenges Apple’s (AAPL) Entry Market

From Nasdaq: 2025-05-06 10:58:00

Microsoft is set to release a new 13-inch Surface laptop and a 12-inch Surface Pro tablet on May 20, priced at $899 and $799 respectively. These devices will feature Qualcomm’s Snapdragon X Plus chips, bringing advanced AI capabilities to more affordable products.

The new Surface devices are priced competitively against Apple’s MacBook Air and iPad models, offering features like natural language settings adjustments and AI-assisted document drafting. These capabilities were previously only available on higher-priced machines, making them more accessible to students and entry-level professionals.

Microsoft’s partnership with Qualcomm aims to democratize advanced AI features by integrating Copilot+ capabilities into budget-friendly devices. The new Surfaces provide strong value with 16GB RAM, competitive battery life, and a lightweight design, appealing to users looking for everyday productivity and on-the-go work solutions.

The introduction of the new Surface devices could pressure Apple and other PC makers to accelerate affordable AI integration, reshaping expectations for entry-level laptops and tablets. Microsoft’s focus on cost-conscious demographics may expand its market share and reinforce its position as a leader in AI-powered productivity solutions.

By certifying performance benchmarks for Copilot+ features, Microsoft ensures reliable AI experiences on the new Surface devices without the premium price tag. This strategy aligns with Microsoft’s goal of widening AI access across education and early-career segments, positioning Surface as the gateway to AI-powered productivity.



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