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Two things hit me right away. The screen resolution isn't as good as an iPad, and there is the issue of apps. I think that is an important issue, since it is so central to what makes mobile devices so versatile and useful, and Microsoft lags behind Apple and Google on this.
I just can't see paying those prices for a tablet that isn't moving the bar any any serious way. The Surface looks decent, but it is not a device that blows you away on specs. I like the cover/keyboard,but Logitech has made something like that for a long time. That's really the only innovative thing that grabs me. I haven't used the new OS, so maybe that is the greatest think ever. Or not. Either way, an unfamiliar OS is not going to be what I base a purchase upon.
I can't imagine this pulling many buyers away from Apple, considering that both of these are premium priced products, and the Surface doesn't have the cache, at least not yet. The Nexus 7 is a smaller device, but one that is much cheaper, has respectable hardware and has many more apps available than the Surface. For $300 less than the Surface, I would be more inclined to hold the Nexus 7 a little closer to my face.