That's a question many industry observers are now asking, since the pricing for the Windows 8 Pro tablet is relatively high for a tablet -- $899 for the 64 GB version and $999 for the 128 GB, without the keyboard cover.

Some observers immediately compared the Surface Pro to Apple's category-leading iPad. The 64 GB iPad, with Wi-Fi and 4G , is the most expensive configuration for that device, and runs about $830. The Surface Pro doesn't have 4G, comes with a stylus, and has a 128 GB model, among other differences. A high-end Android tablet, such as the Asus 64 GB Transformer Infinity, goes for about $600.

'PC AND a Tablet'

But, despite the name, looking at the Surface Pro as only a tablet misses Microsoft's intention. As Surface General Manager Panos Panay wrote Thursday on the Official Microsoft Blog, the Surface Pro is "a full PC AND a tablet."

That's because the Surface Pro runs Windows 8 Pro, and therefore can run all Windows 7 applications. In addition, it supports either a printed keyboard Touch Cover or a Type Cover with moveable keys, so that, with the cover attached, it can also readily operate as a laptop .

This new approach to tablets may be derived from Microsoft's increasingly do-it-yourself approach to hardware. On Wednesday, CEO Steve Ballmer told investors at the annual shareholders meeting that, while his company does have "good hardware partners," it is sometimes the case that "getting the innovation right across the seam of hardware and software is difficult unless you do both of them."

This new "do both of them" approach could be supported by reports this week -- if they turn out to be accurate -- that the technology giant is in the process of manufacturing its own Surface smartphone, to be released in first quarter. (continued...)

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