There has been no upgrade to the low cost Microsoft Surface 3 tablet and now the news is surfacing that Microsoft is phasing out the product. From December 2016 onwards Microsoft will stop producing Surface 3.
This link quotes Microsoft saying that there has been a strong demand for the Surface 3 tablet and it’s weird why, if this is the case, they are no longer offering the tablet. Maybe they want to focus on the Surface Pro 4 and Surface Book range of products which are higher-end.
Despite having the pen support (which normally comes with much expensive devices with other brands) and a complete app ecosystem dedicated to it, the slower processing speed and limited storage have been keeping people away from becoming the tablet mainstream. When the Microsoft Surface 3 tablet was launched it was hoped that sooner or later it would replace the laptop but that didn’t happen.