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So with that price and spec, they're competing in the ultrabook/laptop sector with a hybrid tablet/laptop. Seems reasonable enough but I think that contrary to their expectations, other manufacturers will release better laptop/tablet hybrids for reasonable prices and out-compete them. I already saw a couple of third-party hybrids at Westfield the other day that looked fairly decent and at reasonable prices.

I really don't think the RT based tablets cut it at the moment though. Surface RT has poor hardware specs (especially for the price), immature infrastructure and the interface running on ARM based processors seems to lag a bit. For basic content consumption, iPad and Android tablets just offer much better value for money.