Microsoft's Surface 3 tablet runs full version of Windows

Microsoft has refreshed its tablet line-up with a new entry-level device that runs more software, but is also more expensive than its predecessor.

The Surface 3 is powered by an Intel processor, unlike the ARM-based chip in the Surface 2.

That means it uses the Windows 8 operating system, rather than the more limited Windows RT.

Experts suggest the move could help Microsoft replicate the success of its higher-specification Surface Pro 3.

The bigger tablet, which was launched 10 months ago, features a 12in (30.5cm) screen, compared with the 10.8in display of the new Surface 3.

Shipments of Surface tablets rose from 1.8 million units in the last three months of 2013 to 2.1 million units for the same period in 2014, according to research group Canalys, with the Pro 3 accounting for the bulk of demand since it went on sale.

Microsoft's share of the tablet market has grown from 2.3% to 3.2% as a result, while Apple has seen sales of its iPad decline, although it remains the bestselling brand.

Microsoft markets the Pro 3 as "the tablet that can replace your laptop", and is using similar language for the new model.

But it will target the Surface 3 at those on tighter budgets such as students and schools, and mobile workers who may want a lighter, smaller design.

"For people that need to get stuff done, generally you need a keyboard and some people need a pen, and that's where our device plays," said Dale Perrigo, a Surface marketing manager.

"If you want a pure entertainment that's not what this device is."

The release date is 7 May.

Price shift

The basic version of the Surface 3 - featuring 64 gigabytes of storage, 2GB of RAM and an Intel Atom x7 processor - costs £419.

That is about a third lower than the £639 price tag of the cheapest Surface Pro 3, but about two-thirds more than the £259 that had been charged for the basic Surface 2, which had less storage.

The touchscreen pen and keyboard cover are not included, and add £155 to the cost.

"Because it's an Atom processor it is under-powered compared to the Pro 3, which has plenty of horsepower," commented Tim Coulling, an analyst at Canalys.

"So, it's not going to suit everyone as a notebook replacement and will be for people who only want it for lighter productivity tasks.

"But there are a lot of those people out there."