Why Microsoft Surface could be the biggest shake-up in the tablet market since the arrival of the iPad

Microsoft has fired a warning shot across Apple's bows by announcing its own tablet computer which many experts believe could trouble the best-selling iPad.

The unveiling of the Surface device, with a 10.6 inch screen and built-in stand, marks the US tech giant's first entry into the tablet war, after previously relying on licensing its Windows software for use on hardware made by third-party manufacturers.

However, at yesterday's launch, Microsoft was coy on both pricing and the Surface release date with experts claiming the RT version will need to cost less than the iPad's cheapest £399 price to take off.

Microsoft expert Tom Warren, of theverge.com, said: "Microsoft's Surface tablet marks a massive shift for the company, no longer relying on its OEM partners to provide the hardware design and functionality of a Windows tablet.

"With Surface, Microsoft has sent a clear signal that it's serious about tablets, and has set a benchmark for other hardware manufacturers to follow. The strategy is clearly a risky one, and we've yet to learn when the Surface will be available or its pricing.

"If Microsoft prices this right then it looks to have a hit on its hands for consumers interested in Windows tablets. What remains to be seen is whether consumers crave a Windows tablet, or whether the iPad will continue to dominate tablet sales."

While Microsoft has achieved massive sales success on the console hardware front with the Xbox 360, managing to rival Sony's PlayStation brand, a previous attempt to take on Apple by launching the Zune music player against the iPod didn't prove so popular.

But James Holland, of electricpig.co.uk, believes the announcement is actually a positive shot in the arm for Apple, which up until now has only faced slim competition from the slew of varying quality Google Android tablets on sale.

He explained: "Apple needed Microsoft to unveil the Surface tablet. Since its inception, the iPad has had very little competition, seen runaway success and defined a new category of portable devices. Now though, as the sheen of Apple's third generation tablet begins to wear thin, innovation in the sector is crucial.

"Google has so far failed to deliver much to inspire budding tableteers, or woo them from Apple's app-packed market place, healthy accessory ecosystem or beautiful industrial design.

"Microsoft, however, seems to have the answer. Windows 8 ensures Microsoft Surface will have a ton of apps ready at launch, a good smattering of external connectors means peripheral manufacturers can speed new add-ons to store shelves, and the traditional Windows software inside should mean few compatibility concerns.

"Top that off with inventive design and a svelte outward appearance, and with the right pricing Microsoft might just have an iPad antidote on its hands."

[Related Article: Factbox - Microsoft's Surface takes on Apple's iPad]

Mike Jennings, of PC Pro, agrees and believes Windows 8 could finally mark a turning point for Microsoft in the tablet space.

He said: "Much of what I’ve seen of Windows 8 so far suggests that it’s a far more comfortable OS with touch than with keyboard and mouse, and now it looks like Microsoft finally has a device to do its slick-looking OS justice.

"I think Surface could, potentially, be the biggest shake-up in the tablet market since the iPad’s arrival – after all, few firms aside from Samsung have made waves on the Android side of things despite dozens of devices fighting for market share.

"There are also few companies that can compete with Apple when it comes to sheer reach and size, with Microsoft being one of them."

But he added: "That’s not to say there aren’t question marks over Surface and its success; as the iPad has demonstrated it’s all about the apps, and Microsoft needs killer apps, plenty of software and a huge amount of quality and variety to succeed. I expect Microsoft is working feverishly behind-the-scenes to get more apps ready for the device’s launch."

However, Jan Dawson, chief telecoms analyst at Ovum isn't so sure. He feels the Microsoft device may struggle to live up to the initial hype and promise for the consumer - but should succeed in the business world.

Mr Dawson explained: "In theory, it delivers all the benefits of both the tablet-optimised environment and the classic desktop approach and apps, but in reality the versions available to try at the moment are a horrible mishmash of the two worlds that is likely to be confusing for the consumer.

"IT managers see this device in one of its versions as a replacement for the Windows computer, so it should see some decent desktop adoption. But whether it sees much consumer interest will depend entirely on price and whether Microsoft is able to fix the poor UI experience."
And Mr Dawson added the launch could even backfire if it causes bad feeling among the manufacturers of Windows tablets and laptops, seeing as Microsoft will now be competing against itself.

He explained: "On the hardware front, either they are not happy with the devices out there, or they are not satisfied with only taking a licence fee from selling Windows-based tablets.

"Either way, it is a huge vote of no confidence in its OEM partners, who should rightly feel slighted. It is rarely a good idea for an OS owner to start competing with its OEM partners, and this does not feel like an exception."

Running the upcoming Windows 8 operating system, due out later this year, Surface comes in two versions. The RT has a slimmed down mobile Metro' OS and is more of an iPad competitor, while the Pro version provides a full desktop experience.

It can then be paired with Microsoft's innovative cover, which like the Apple Smart Cover magnetically attaches to the tablet. It has both a trackpad and keyboard built-in to instantly turn the device into a portable PC.

The Pro also runs on a quad-core Intel i5 processor and will have 64GB or 128GB of storage so along with the keyboard attachment it can be pitted against many Ultrabook laptops.