# Microsoft Plans Cheaper Surface to Rival Apple

October 20, 2026 at 04:22 PM

> Microsoft is reportedly developing a budget 12-inch Surface device powered by AMD Arm chips to compete with the new $599 MacBook Neo.

**Microsoft** is reportedly reevaluating its Surface hardware strategy following a DigiTimes report and the release of **Apple**'s $599 MacBook Neo. The company is exploring specification reductions for a new entry-level 12-inch Surface device to remain competitive.

Rumors from leaker KeplerL2 suggest **AMD** is developing an Arm-based processor codenamed Sound Wave for these Microsoft devices. Built on **TSMC**'s 3nm process, the chip features six CPU cores, RDNA 3.5 graphics, and a fourth-generation AI engine for efficiency.

This shift follows the October 13 launch of the **Surface Pro 12** and Laptop 13, which start at $1,149.99. A lower-cost Surface powered by the 5-10W Sound Wave chip could bridge the price gap against Apple while utilizing high-speed LPDDR5X-9600 memory tech.


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