Apple launched a new version of the $329 iPad in March, with a faster processor and Apple Pencil stylus support. The $329 iPad has helped prop up iPad sales significantly since it was introduced last year. Apple has said that the 9.7-inch tablet is its most popular iPad.
Bloomberg reports that Microsoft is looking to compete in ths price range with some new Surface tablets that hit $400 price points. The products are expected to debut later this year.