Microsoft’s Surface getting £650 RRP?

Rumours online today suggest that while Microsoft might be targeting the tablet market, it isn’t intending to compete on price.

WPCentral has word from Scandinavian retailer Webhallen that the entry-level 32GB Surface model will retail for an eye-watering 650.

That places it far ahead of the entry level 32GB Wi-Fi iPad, which currently retails for 479. The 32GB 3G model retails for 579.

Google’s new Nexus 7 tablet, however, will retail for just 159.99 when it hits the UK.

Of course, Microsoft could argue that you get more bang for your buck from Surface. But 500’s worth of bang? That’s a big ask in the increasingly broad tablet PC market.