This is amazing. It will definitely cut into iPad Pro sales. I see this as more competing with the iPad Pro for businesses and productive individuals than a competitor for the entry level iPad. Those who want a personal entertainment device go iPad.
I'm going to make a statement that some will likely disagree with but I'm going to just say it:
Apple products do NOT belong in a business environment. I don't care if you are a small business or a corporation. Other than maybe the iPhone because it works so well with Exchange where as Android doesn't play as nice with Exchange. iPads do not belong in a business environment. They can't run desktop class apps like a Surface tablet can, and they don't have a cursor/trackpad/pointing device. The keyboards SUCK compared to Type Covers and the pencil is underwhelming compared to Surface Pen. Macs also don't belong in a business environment either unless you are using Boot Camp or Virtualization ONLY. Why use an iPad when you can get a W10 tablet that runs full desktop class apps and is so much nicer to use with a server or actually printing to a network printer, or the ability to have it managed with Server.
For a personal recreational device the iPad is fine. I own two iPad Pros, so I obviously like them. And for a personal productivity/entertainment/general use Macs are fine. And I have two retina MacBook Pros, again I like them a lot.
But a Surface can be joined to a domain, can roll out desktop class apps, work with Windows Server/Active Directory. You can run a FULL copy of Office, not just the iOS or Android Office apps. Even the Mac version of Office is weak compared to the Office experience you get with Windows 10 be it Office 2016 or the 365 version, which I absolutely love and use daily.
All this talk about Windows 10 is a bad customer experience. You. Are. Wrong! I like to think that those who say that haven't tried a recent version of it. 1803/RS4 is solid as a rock. Those who cling to Windows 7 really annoy me. Same with those who cling to Snow Leopard or Mavericks or older versions of iOS. Move on people. The grass is definitely greener on the newer side. Always be on the latest operating system, and if you can't update buy a new device. There is no benefit to staying on older software. Any possible reason to do so can be shut down with lots of explanation and facts and real data. Just don't.
Now, if you just want a personal device for entertainment and light productivity that's fine but:
The iPad is NOT a PC replacement device for anyone who is serious about productivity. It just can't be without a more in depth file system, desktop class apps, and a way better operating system. If you take "getting things done" seriously and especially if you are a business, you just can't do things with the iPad that you can with a real desktop-class OS. Or if you can, it's painfully hard to do so. iOS 12 is still not good enough to replace either macOS or Windows. They need to make a Phone OS, Tablet OS, and Computer OS. Don't just put a phone OS with a couple of tweaks on a tablet and call it a PC replacement. That's why Android tablets are dead. Starting with Android P, no more tablet support. Android tablets were a blown up smartphone. iPad DOES have some iPad-only features, but they are not able to compete with the Surface line.
Apple has a long road ahead if they want to be taken seriously in the minds of those of us who want mobility but not at the cost of giving us a half-baked experience and not being able to do laptop-like things with our tablets. Surface FTW!
I'm a big believer in the new Microsoft, the Satya-driven Microsoft. They are going in the right places. Focusing on software and services, while offering their own mobile hardware that they work hard with the Windows and Office teams to make running Microsoft software and services work better on a Surface than almost any other PC OEM manufacturer. Office 365 is a gem, no one should be using G Suite anymore. Azure is absolutely gamechanging, and actually their entire cloud division is making leaps and bounds over Google Cloud Platform and Amazon Web Services. I'm happy for Microsoft.
I'm way more excited for what Microsoft can do in the next 5-10 years than I am for Apple OR Google, although Google also is way ahead of Apple at this point. I think that Microsoft and Google will be THE names in tech going forward. If Apple doesn't change it's direction, they will get left behind. And I badly want Apple to succeed. But I call it like it is.
I will be preordering the 8GB RAM/128GB SSD model tonight along with a type cover. I'm very excited to say the least. I personally think battery life and performance will be fantastic. If you look, the Pentium Gold is basically an energy efficient Core i3, and that's plenty good for a tablet/small PC.