Microsoft has significantly increased the starting prices of its Surface PC lineup, effectively eliminating all entry-level models priced under $1,000 due to rising component and memory costs.

Key Points

• Microsoft discontinued entry-level Surface models with 256 GB of storage, raising the starting price for the Surface Laptop and 13-inch Surface Pro to $1,499.
• The 12-inch Surface Pro and 13-inch Surface Laptop received price hikes of $250, bringing their new starting costs to $1,049 and $1,149 respectively.
• The company attributed these adjustments to global supply shortages and increased costs for RAM and storage components.
• These price changes follow Microsoft's recent transition from Intel and AMD processors to Arm-based chips for its flagship PC hardware.

Why it Matters

These price hikes position Microsoft’s premium hardware at a significant disadvantage compared to Apple’s MacBook lineup, which currently offers more competitive pricing for similar specifications. This shift may alienate budget-conscious consumers and complicates Microsoft's efforts to gain market share with its new Arm-based Windows architecture.