Microsoft Surface RT Claims to Beat iPad 3's Retina Display
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At $499, the entry-level Microsoft Surface RT matches the price of the iPad 3, but has more storage, and more importantly, a screen that's superior to the iPad 3's highly touted retina display. The Surface RT's 10.6-inch ClearType HD screen comes with a resolution of 1366 x 768 while the iPad 3's 9.7-inch screen comes with a 2048 x 1536 pane. But Microsoft's Stevie Bathich points out that iPad’s high resolution hurts readability, noting that as resolution increases, eye sensitivity decreases (thus increasing impact of reflection to the eye). Using Microsoft's ClearType display technology that maximizes the "perceived resolution" of its display, people will see more detail on Surface RT than on the iPad with more resolution, he claims.

What Else You Need To Know

  • Microsoft’s $499 Surface has 32GB of storage while the comparably priced iPad 3 only has 16GB. But the Windows RT operating system takes up 12 GB of space in the Surface RT while iOS takes only 1 GB of space in the iPad.
  • The Surface RT sports a Windows RT operating system, an NVIDIA T30 processor, 2 GB of RAM, and 720p front and rear-facing cameras, Bluetooth 4.0, Wi-Fi (802.11a/b/g/n), and microSD expansion.
  • The Surface with Windows RT, 32 GB of storage, and without a keyboard cover has a $499 price-tag. The keyboard covers are priced at $119 and $129.

Other sources

While I’m eager to see the display of the Surface for myself, I can’t help but doubt that a much smaller resolution screen can compete with the gorgeous high definition display of the iPad. - Juli, Pad Gadget  
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Though its display is a lower resolution, Microsoft claims the screen on its upcoming Surface tablet is even better than the iPad's Retina display.

TN
Microsoft Analysis Claims that the Surface Display Res is Actually Better Than the iPad 3 Resolution  

The Surface RT display provides a resolution of 1366 x 768 pixels, as confirmed by Microsoft and we compare that to the iPad’s 2048 x 1536 Retina screen. And here comes Microsoft’s applied sciences department manager Stevie Bathich, who explains that there’s more to this comparison than pure resolution.

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