For one thing, this month the company is only launching the Windows RT version of Surface, running on an ARM-based processor.

FORBES: Microsoft: Don't Expect Office For iPad In The Near-Term

That Apple is looking to upstage the PC giant becomes evident when we consider that Microsoft is launching its own tablet PC, the Surface Pro, in a couple of days.

FORBES: Apple's New iPad Takes On Microsoft As Tablets Nab PC Sales

By launching an iPad with the same storage option as the Surface Pro, Apple is effectively positioning the high-end iPad as a computer replacement.

FORBES: Apple's New iPad Takes On Microsoft As Tablets Nab PC Sales