Ladies and gentlemen, the Microsoft Surface:
The more innovative aspects of it involve the magnetically attached cover, which folds down to reveal a full keyboard and touchpad as shown in the image. There will be two versions of the cover, a touch version and a slightly thicker version with physical keys, and the covers will be available in multiple colors. Also, note the kickstand in the back which can be used to rest the tablet at 22 degrees. There are back and front facing webcams, the front one angled back at 22 degrees such that it points directly ahead when the tablet is mounted on the stand.
Impressions of overall construction from the media present at the unveiling Monday night in Los Angeles were quite positive. The case is made of Magnesium, using a process of vapor deposition which Microsoft calls "VaporMg," and the cover is Gorilla Glass. It's all well put together and gives the impression of quality construction, right down to the kickstand built into the rear casing. At 10.6' the screen is slightly bigger than common 10.1 inch tablets, and the Windows RT version (more on that below) will be marginally thinner than the latest Ipad but a touch heavier.
The Surface will come in two forms, differentiated by CPU and secondly by the versions of Windows designed to run on those CPUs. The initial version will use an ARM CPU manufactured by NVidia, most likely quad-core. Chips designed by ARM Holdings (a British design firm) and manufactured by companies like Qualcomm, Nvidia, Texas Instruments, Samsung and others run most current smartphones and tablets including Apple's I-devices. The version of Windows is runs will be called Windows RT to distinguish it from the classic Intel version of Windows 8 though the two operating systems will be very similar and will run the same apps made for the new "Metro" interface described in the Windows 8 thread. Another version, to arrive a few months later (perhaps early 2013) will be built around an Intel Core i5 and will run Windows 8, including the ability to run existing desktop apps. While the RT version will include a copy of Office 2013 Home and Student designed for the ARM architecture it's different CPU architecture means current desktop apps won't run on it.
The RT version will ship about the time Windows 8 is released (currently expected in October), along with other Windows 8 tablets from other PC makers while the Intel version follows a few months later. Microsoft has been vague on details including pricing; the RT version is simply said to be "price competitive with similar tablets" and the Intel version "price competitive with current Ultrabooks." An Ultrabook is Intel's term for a very light and thin laptop with DVD or Blu-ray drive. Other key unknowns include battery life. A lot of these details won't be known until these things are released and full reviews are published.
As far as the competition thing, one commentator I read had an interesting perspective. To paraphrase:
Microsoft has been yelling at it's partners for years to focus more on quality and the user experience. Make a few really good PC models as opposed to a bewildering array of mediocre ones. (In essence, be a bit more like Apple on these points) Avoid loading down PCs with so much third-party crapware that the system becomes perceptibly shower. Since these PC makers by and large have ignored these exhortations, Microsoft is effectively showing them how it's done -- how to make a quality PC. Microsoft seems to have decided they have so much riding on third-party PC manufacturers who they can't rely on to deliver the kind of experience Microsoft intends for its PCs that they had to lead the charge themselves and set the example. If the early previews of the hardware are to be believed, the bar is now set very high for new Windows 8 tablets. Further, a tablet from Microsoft will surely deliver the purest Windows 8/RT experience possible, with no third-party crap mucking things up.
