Google's reaction is a good example. After the iPhone launched in 2007 They immediately threw out the original blackberry like android device they were planning to release first and focused on their more iPhone like variant. Microsoft just mocked Apple and did nothing.
As far as the surface goes I think it's an interesting idea and could be great, but they're doing annoying marketing things again that are hurting it. Making people pay an extra $120 in order to get the actual product is annoying, why sell the crippled version without the keypad when that's the entire point of it? Just include the keypad at the lower price point instead.
