This is how Microsoft always advertises their products, all smoke and mirrors and no substance.
This will do well in enterprise - we're crying out for USABLE Windows tablets which don't suck like the current crop - but consumers? I don't think so. Why would you?
I think it's quite the opposite. There are not many business scenarios where tablet computers make ANY sense - electronic data capture, for example in clinical trials, are an area where tablets can do great. But where else can they replace a notebook?
The Surface is a hybrid solution, and THAT makes sense. You can use it like a pure tablet if you WANT to, but you can ALSO use it as a real notebook - if you WANT to.
This thing can do a lot for most consumers that not always need a "real" computer but also do not want to spend the money on two devices because once in a while they do need to use some software that requires a "real" computer and not just a couch surfboard.
And the "Pro" version of the Surface runs the "real" thing and is compatible to millions of legacy applications. The "RT" requires software that is compatible to the ARM architecture, but it's safe to assume that we will soon drown in that software. Even though it's a different CPU, it's still Windows running on top of it. Porting should be rather straight forward. And unlike what most people seem to believe, the "RT" version is NOT limited to just Windows 8-style (formerly known as "Metro") apps.
The Surface does not have a Retina display. So what? The iPad 2 is still being sold and it does not have a Retina display either. In all likelihood, the iPad Mini will also come with a non-Retina display. Obviously even Apple knows that Retina displays are not a killer argument.
I think the Surface is an interesting product for millions of consumers, and I think the Surface concept is going to steal away a lot of potential iPad customers. Unlike the iPad, the Surface actually CAN replace a computer. And unlike Apple, Microsoft licenses their software to the remaining industry, so there will be hundreds of different products from many vendors that will all be software compatible with each other.
Personally, I would certainly chose a "Pro" Surface (the forthcoming version with the Intel CPU) over an iPad, even if it's going to be more expensive. And even if I had to chose between and iPad and an "RT" Surface, I'd still go for the Surface. iOS will always be the deal breaker for me.
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Microsoft has too many variations - Windows RT, Windows RT Pro, Windows 8, Windows 8 Professional, Windows 8 Home & Students.....not sure how many more variety they are going to come up with. These versions have lots of conflict with the hardware that they are planning to make (RT will not be backward compatible while Pro is and so on....)
Besides, there is no 3G/LTE App Store needs to pick up...
I am sure Apple is banking on its MS Office 2013 which is probably the only differentiating factor.
It's actually rather simple:
Windows RT --> ARM architecture, third party software is only available through Microsoft's online store
Windows 8 --> Intel architecture, no Domain features (== "home" edition), software is available through all channels
Windows 8 Pro --> Intel architecture, Domain features and enterprise ready (this is the version that you want to use in a corporate network), software is available through all channels
At this point, other versions are basically irrelevant or can only be purchased through enterprise volume license agreements - which means that as a consumer you won't even see those versions in a store and thus they cannot confuse anybody.
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No matter what they introduce in the touchscreen era, they're going to be far behind Apple.
The pricing is very odd - those who don't want the Apple will get their Android tabs. And those who are willing to shell out some money will go for the iPad.
And those who do not want to buy a notebook AND a tablet will simply buy ONE device: The Surface. THAT is what Microsoft is trying to do.
