Microsoft ditches ARM for Intel with new $499 Surface 3, its latest iPad competitor

Microsoft ditches ARM for Intel with new $499 Surface 3, its latest iPad competitor: "The Surface 3 also supports the same Microsoft-built Pen introduced with the Pro 3 model, allowing users to quickly take notes and gain additional features with the tablet-laptop hybrid.

The base $499 model will come with 64 gigabytes of storage when it launches on May 5, but the Type Cover and Pen are sold separately, priced at $130 and $50 respectively."

I think they could give away the razor (Surface) to sell the blades (Office). Given that they made Excel, can't someone at the company do the math?