With the launch of the Surface Tablet last Friday, Microsoft Corp. (Nasdaq: MSFT) has entered the fray in the growing tablet market. While the highly controversial device was dismissed by some as being dead on arrival, it has none the less exited Microsoft's womb and is now for sale. While early reports are mixed, it is becoming clear Microsoft's efforts to market the product as both a laptop and a tablet are working.

The Surface tablet is inferior to Apple's iPad in many areas, including its display, the number of apps available, design, etc. Critics also point out that the cheaper version of the tablet, the Surface RT, has a dumbed down version of Microsoft's powerful new operating system, Window's 8. It has also faced criticism for being expensive relative to other tablet-devices by competitors Apple, Google (Nasdaq: GOOG), and Amazon (Nasdaq: AMZN).

The Surface's biggest advantage may be Microsoft cleaver marketing approach, which has billed the tablet as a fully functional PC and tablet rolled into one. Its key differentiator relative the Apple's iPad is its keyboard. Though, again, there is plenty of criticism in this area, since an iPad with a comparable price could also sport an attached keyboard, it is doubtfully most consumers realize this.

With distribution still an issue, the Surface tablet is likely to face an uphill battle, but the bottom line is that Microsoft's marketing pitch appears to be working. Folks buying the Surface view it as a hybrid laptop-tablet and this may give it a much needed leg up in its fight against Apple. While the surface it far from a slam-dunk, it is clearly alive and well, giving Microsoft a fighting chance despite overwhelmingly poor odds.

Insiders' Blog