• Microsoft has increased the starting price of its Surface Pro 11 and Surface Laptop 7 by removing the $999 configuration, now starting at $1,199 with increased storage.
• The company introduced new, more affordable 12-inch Surface Pro and 13-inch Surface Laptop models, featuring Snapdragon X Plus processors and smaller screens.
• The pricing changes appear to be a strategic move to position the new, smaller Surface devices as more attractive options compared to the flagship models.

Microsoft has made significant changes to its Surface product lineup. The company has quietly discontinued the $999 entry-level configuration of the Surface Pro 11 and Surface Laptop 7, effectively raising their starting price to $1,199. Simultaneously, Microsoft has launched new, more affordable 12-inch Surface Pro and 13-inch Surface Laptop models. These new devices are designed to offer a more budget-friendly entry point into the Surface ecosystem, while the pricing adjustment of the flagship models aims to strategically position the new devices as more competitive options.

• What: Microsoft has discontinued the $999 configuration of Surface Pro 11 and Surface Laptop 7, increased their starting price to $1,199, and launched new, more affordable 12-inch Surface Pro and 13-inch Surface Laptop models.
• Who: Microsoft, consumers, retailers (e.g., Best Buy, Amazon).
• When: The price change and new product announcements occurred in the week of May 2024. Preorders for the new models are available, with retail sales starting May 20.
• Where: Microsoft Store, online retailers (e.g., Best Buy, Amazon).

Microsoft's decision to adjust the pricing of its flagship Surface devices while introducing more affordable options reflects a strategic effort to cater to a wider range of consumers and market segments. By increasing the starting price of the Surface Pro 11 and Surface Laptop 7, Microsoft effectively widens the price gap with the new 12-inch Surface Pro and 13-inch Surface Laptop. This makes the newer, smaller devices appear more attractive to budget-conscious buyers. The introduction of Snapdragon X Plus processors in the new models provides a balance of performance and affordability. However, the removal of the lower-priced configuration from the flagship models could potentially alienate some customers who were drawn to the $999 price point. The availability of the original configuration through third-party retailers might mitigate this issue, but it remains to be seen how long these retailers will continue to stock the older models.

Microsoft's recent adjustments to its Surface lineup demonstrate a strategic shift in pricing and product positioning. By increasing the starting price of the Surface Pro 11 and Surface Laptop 7 and introducing new, more affordable models, Microsoft aims to capture a broader segment of the market. The success of this strategy will depend on consumer response to the new pricing structure and the perceived value of the new devices compared to the flagship models and competing products.