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  Tablet PC in trouble--Microsoft blamed
Time: 10:40 EST/15:40 GMT | News Source: ZDNet | Posted By: Byron Hinson

One year after Microsoft launched its tablet PC operating system, sales have been disappointing, the choice of models is still poor, and software developers have no incentive to create specialist applications, according to a report by research firm Canalys. HP, Acer and Toshiba launched tablet-PC hardware at the same time that Microsoft launched its Windows XP Tablet PC Edition, but after a promising start, sales have fallen sharply with analysts and manufacturers blaming Microsoft for charging too much for its operating system.

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#1 By 415 (199.8.64.215) at 11/7/2003 10:57:14 AM
This is typical of any new product's lifecycle. The question is whether there is enough demand to push Microsoft and their partners to make Tablets even more attractive. I think there is...

#2 By 1295 (216.84.210.100) at 11/7/2003 11:10:49 AM
I think there is the demand for the OS its the hardware that is lacking right now.

I personally have used both the HP/Compaq TC1000 and the Toshiba. The toshiba, while having the PIII, was really laggy when sampling the Pen.

The TC1000 in my view is the best. However its the pricing of the HARDWARE that has kept me from buying it. And before you guys start barking "OS is part of the Purchase" I'm talking about the $99 CD-Rom or the $199 DVD-Rom or the $199 DVD/CD-RW drive. Of course to even use any of these you have to buy at least the $79 Multibay or to really enjoy this product (and what makes it so sexy for business) you have to pump $299 into the docking station. And all of this is after shelling out around $1700 for the device itself. So your looking at around 2k just for the system w/o any productivity software. Then you have $60 to $100 for a decent carrying case, $50/extra stylus, $139 for an external battery charger and $129 for a extra battery. So your looking at spending, for a normal user's system, $2,476.

That's not too bad but the systems are slow to begin with. If they dropped their prices at HP they would have sold @ least another 5, 2 to my company and 3 to others I know who are drooling.

Not to mention this is Gen1 of these products. I'm more likely to spend the money on the TC1100 since it will be faster and hopefully they have worked out some of the bugs.

This post was edited by Mr.Humpty on Friday, November 07, 2003 at 11:16.

#3 By 7754 (216.160.8.41) at 11/7/2003 12:04:44 PM
I'm not usually a big Gateway fan, but I saw a prototype of their new Tablet PC, and it looks to be a winner. Built-in media bay, convertible-type, at least 256 MBs RAM (they figured probably 512), up to Pentium M 1.7 GHz proc (IIRC), and they thought probably a 64 or 128 MB video card... they didn't mention a specific price, but they thought possibly around $1600-$1800. I can't remember the screen size, though, but it looked to be at least 12... maybe even 14??? I would like to wait for the next release of the OS, though.

#4 By 1124 (165.170.128.65) at 11/7/2003 12:31:15 PM
Mr. Humpty,

I agree with your comments. I wanted a Tablet from day one, but the price was too high. The only way we can blame that on MS is if they were charging an extra $500 to $1000 more on the OS.

#5 By 3 (62.253.128.7) at 11/7/2003 1:19:54 PM
#5 - When i said it wasn't selling well a few months ago I was told different here yes. But it was quite obvious it wasn't doing well at all, the Tablets themselves are too expensive, the processors are not what you would expect when paying out what you are and some have been exceptionally buggy. Fingers crossed both Microsoft and the hardware companies will get it right with the next generation versions.

#6 By 7754 (216.160.8.41) at 11/7/2003 2:13:10 PM
The ultra-light notebooks tend to be pricey, though. Many of the tablets are around 3 lbs.

#7 By 61 (24.92.223.181) at 11/7/2003 2:21:11 PM
I'd say they should be $100 to $150 more expensive than a regular laptop with slightly better hardware.... but that's just me.

I personally would buy one but, like everyone else states, they are too expensive.

#8 By 3339 (64.160.58.135) at 11/7/2003 2:22:15 PM
"The only way we can blame that on MS is if they were charging an extra $500 to $1000 more on the OS."

But we have several manufacturers claiming the cost isn't substantially different from standard laptops, and they are complaining the cost of licensing is too high. The costs I've seen run from 1600 to 2700. The hardware and form factor is limiting, and that's not attractive, but clearly (at least in the PC OEM world), the manufacturers are looking at fixed hardware costs... but since they're primarily standard notebook parts, they aren't paying a premium on those components.

The premium must be in the software.

The problem is we are talking about a tiny niche that MS sold as being a huge potential. So you have 10 or more low end OEMs carving up what amounts to 1% of the notebook market. So not only do you have reports of higher costs for OS licenses, but you also have no manufacturers able to establish a considerable volume discount.

This post was edited by sodajerk on Friday, November 07, 2003 at 14:23.

#9 By 1896 (68.153.171.248) at 11/7/2003 3:36:51 PM
IMO the biggest problem is that all of the available models are underpowered and with a too short battery life. I have not used one based on Centrino but I had a Toshiba with 512MB of RAM and, at least for my needs, was underpowered. Also I totally agree with Mr. Humpty, using the pen was a struggle. I hope the next Toshiba will be better.

#10 By 61 (24.92.223.181) at 11/7/2003 11:48:51 PM
cba: The only difference in hardware is the stylus and the touch-sensitive screen.

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