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TabletPCBuzz.com - PC World: Microsoft Tries to Nudge Tablet PCs Into the Mainstream, new HP convertible
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"Some two years after its introduction, Microsoft is seeking to drive its Tablet PC technology into the mainstream with lower prices. But some analysts say that alone won't do the trick--and not many PC vendors are helping Microsoft's effort.
Microsoft and vendors including Toshiba and Acer want to move beyond niche markets, so they will no longer target Tablet PCs chiefly at mobile professionals and specific industries such as health care and insurance. This year, both Acer and Toshiba will start selling tablets that are not as thin, light, or powerful as their predecessors, but that are up to 25 percent cheaper.
"We're right on the verge of seeing a lot more competitively priced tablets on the market," said Robert Williams, director of business development and partner engineering in Microsoft's Mobile Platforms Division. "This spring, you will see tablets go into retail in the $1500 to $1600 price range."
For the past year or so, Microsoft has been working with PC makers and component suppliers to push down the cost of manufacturing Tablet PCs, Williams said. As a result, the new tablets should only be $100 to $200 more expensive than comparable notebooks, he said.
Toshiba America plans to ship a new Tablet PC in its Satellite consumer and small business notebook line in the first quarter of this year. The $1599 Satellite R15-S822 will be the first Toshiba Tablet PC to be sold widely in retail stores, said Terry Cronin, director of product management in Toshiba's digital products division.
"The market is expanding. Tablet is becoming just another feature on top of notebooks. 2005 is really a take-off point for going mainstream," Cronin said.
Newcomer Averatec is ahead of the curve. The San Diego company in mid-2004 shipped a $1350 Tablet PC that is sold in retail stores. At Microsoft headquarters in Redmond, Washington, several employees took a corporate credit card and bought all the Averatec machines on sale at a local Costco Wholesale store. "
Looks like Acer is entering the Consumer market, as well.
"Acer, which has been selling Tablet PCs since the launch of Windows XP Tablet PC Edition in November 2002, later this year plans to join Toshiba and Averatec with a lower-cost Tablet PC, said Sumit Agnihotry, a product marketing manager at Acer America.
"What we're heading to in 2005 is to drive Tablet PC to an optimal price point, basically bring Tablet PC to a traditional notebook price, and we believe that is below $1500," Agnihotry said. Acer's new Tablet PC may be sold in retail stores, a first for Acer, he said. "
And here is a key bit of news for those looking for info on new HP Tablets:
"On February 2, HP plans to introduce two new Tablet PCs in its business notebook lineup. One of the devices will be the company's first convertible notebook, a machine that resembles a traditional notebook but that has a screen that swivels around to support pen-based computing. The device will cost just over $2000, Mazzantini said. "
I've heard what this new convertible looks like. If its' true, it'll be hot!
This year, both Acer and Toshiba will start selling tablets that are not as thin, light, or powerful as their predecessors, but that are up to 25 percent cheaper.
Even heavier? The little time that I used the M205 for put me off because of its sheer weight. You'd need to prop it against a desk in tablet mode in order to use it for longer than half an hour... and that makes it as bad as a laptop to me. The reason I've moved away from laptops is that although you can take the computer with you, you have to have a desk whereever you want to use it and that doesn't make any sense to me. A heavy tablet just means that you're tied to a desk just like a laptop is.
Not what I'd heard (or rather what they been saying)...but good news if so, but regardless HP sure has pulled back, even in "business" areas. And HP is sooooo schizophrenic when it comes to Tablets, turmoil alive at that company, with a SAP ordering system from hell. If they are going to introduce them on Feb 2nd, why didn't they have an early-unit model(s) on display at CES? All the worlds press was there.
But at more than $2,000 and the faltering fortunes of HP, I don't think this Convertible will be a big draw. And really odd for Mazzantini to go anti-Consumer and anti-Education as the slick Slate TC1100 is totally that, look at it's popularity on the community (consumer) boards and in Educational markets. HP TC1100 is a consumer hit. I think he is missing something here. He should have said, “we will serve both markets”, doesn't mean you need to advertise in both. But to crisp off a whole market segment, talk about being counterproductive.
Who are Tablets for? Everyone, just all in the applications. Consumers are verticals, these things bubble up to the Enterprise via grassroots. It always annoys me, to no end, when the MBA-laden types try and slice up markets into artificial little domains (my pet peeve). I know of a company that ended up purchasing a whole slew of Tablets, and why? As the CIO, saw it being used at his wifes school. And that lead to a CRM/SFA product catalog app of sorts, ideal on Tablet. Market to the school-teacher, you just might market to the CIO. Nothing happens in a vacuum. And things come in the back door, more than the front. Granted consumers have no need for Rugged units, but everything else has a play. Office workers might like to play a DVD on a plane, etc.
But miss not the OTHER bit of news:
Acer...later this year plans to join Toshiba and Averatec with a lower-cost Tablet PC, said Sumit Agnihotry, a product marketing manager at Acer America.
That sounds GREAT. Acer at retail, and consumer priced.
But more commentary...some one slap me, if I rant too much. ;)
If you walk into Best Buy or any of those places today, and you ask why you should buy a tablet, you are very fortunate to even find someone who knows what they are. And then you are doubly fortunate to find any units actually there and on. And then if a rare miracle of God happens, you can play with a Tablet running a lame demo loop while the unit is locked down in a notebook-like contortion, and even then, should you decide to purchase, the superstore prices are way way behind, Office Depot being the worst, and you will end up paying way way too much.
It is a bit more difficult message and the whole Tablet PC community needs to figure out a way to deliver that message.
Coffman nailed it. But the answer is quite simple, an army of evangelists, on a constant relentless demo-show-off thrust, who go beyond the early adopter and web creature set. You have to see, to use, to get a feel for it, not a product that sells itself. I mean where are the Tablet PC team externally highly-visible Evangelists? Maybe Frank and Arin, but they are mainly at Developers. Evan ducked down. Everyone else is behind the scenes (doing good work mind you, not all companies run press releases). But the perception, isn't there, seems mainly Scoble, and he's more the bloggerese "I only use my Tablet for photo ops" type. (Hey, he's a great friend, but let's be honest here.) :)
And other (unspoken) answer is an Apple Tablet, that could make the Tablet-concept cool, cultural phenom, and rise all tides.
Tablets will take as they will just merge with the OS and meld into notebook tech, but that still doesn't mean, however, that everyone will take advantage of Ink or Ink applications, or even know of. Assimlation doesn't always mean market-share.
USA
1199 Posts My Tablet PCs: TC1000, M1300, M200, C110, ST4010
Posted - Jan 29 2005 : 06:52:44 AM
Good comments Chris.
Comment part 1: Tablet is here to stay, I am at least convined of that. I know everyone is looking for the big event or day that they just explode on the market, but I think this is exactly what MS has been calling it in marketing campaigns, the "Evolution" of the notebook, not the "Revolution". Slow and steady is the pace, but in the long run it will be a part of what mobile users have in the future. Comment part 2: Software is still the key to major adoption. Compelling people to use a piece of software will drive tablet sales. Why has it not happenned yet? I personally think we as developers (and I include myself) have yet to break out of the standard PC keyboard /mouse paradigm enough to have innovative ideas on GUI, etc.. I have personally blueprinted and started about 6 tablet apps now, but abandoned them due to lack of real excitement on what it can do. It will happen, give it time.
MCP, MCSA, MCSE, Microsoft MVP - Tablet PC Platform Associate Expert, Microsoft Expert Zone "We are wise by other people's experience" - Anonymous
89 Posts My Tablet PCs: Toshiba Portege M200
FIC Slatevision
Posted - Jan 29 2005 : 09:40:32 AM
I haven't asked Dan, but I wonder if his final quote was taken out of context. Afterall, Viewsonic doesn't sell its Tablet PCs through the retail market. In general, I understand his point, but my guess is Dan is repeating what other companies experience.
I know I'm repeating myself, but most OEMs have boxed themselves into one of two outlets for Tablet PCs: retail or direct. Is the expectation of people purchasing from Best Buy, CompUSA, etc accurate? I'd be interested in the #s of visitors to browse and conversion to sale. If we go to the retail store just to look at the Tablet PC (and not actually purchase from that company), then maybe we really need another method for people getting primary information. Traditionally, it's the channel (VARs, consultants, regional resellers, system builders, etc.) where people buy PCs, not retailers anyhow. Should we really expect Tablet PCs to be any different? Anyhow, Acer is on the right track with channel sales. I hope others will take their lead into consideration.
This issue does not strictly belong to Tablet PCs - it's something the entire computer industry is experiencing.
-- Lora Heiny
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The real problem with Tablets is that you can't put one on display (as a tablet) in a retail store without it being broken in a week. The only ones you will see at Best Buy or Circuit City are Toshiba and Averatec convertibles -and those are displayed as notebooks, not tablets. Most people walk by without even knowing what they are. That problem has to be overcome
89 Posts My Tablet PCs: Toshiba Portege M200
FIC Slatevision
Posted - Jan 29 2005 : 1:39:47 PM
JST - yes, you typically see Toshiba and Averatec in retail stores / outlets. The reason we see those brands are two part: 1) partnerships: retail and reseller partner programs and being authorized for sales and service and 2) distribution channels. Toshiba and Averatec use traditional distribution channels so stores can purchase. It's harder with companies like Fujitsu because of their established authorization requirements. Acer focuses on your regional reseller, so you can usually see evals at local shops and if they don't have one Acer will ship a product extremely quickly for someone to eval.
Keep in mind that the retail stores traditioanlly have not been where people actually buy PCs. They're good browsing places and as regional resellers started closing they did increase their marketshare, but it's still a minor sales channel. It's a bit of a false litmus test.
Let the people who actually SELL PCs get involved in getting Tablet PC information and product to customers. Let the whitebook builders, VARs, consultants, etc. into the Tablet PC market (the majority of US sales). Microsoft made this change with Media Center edition and saw results. For example, small system builders (over 200,000 worldwide) have been building performance PCs so people could record tv shows, watch movies, etc. for years. Once the Media Center PC Edition operating system was released into the OEM System Builder program, they were able to keep doing what they were doing already and stop getting cut out. Now, those same companies are already building notebooks. Allow them to offer Tablet PCs to their clients and they'll keep doing what they already do well - sell. Anyway, I'm repeating myself :)
-- Lora Heiny
Sign up to be a Microsoft Tablet PC Partner at TabletPCPartners.com. Tablet PC owners, hobbyists, and professionals may be Alliance Partners. Developing Tablet PC software or hardware? Find out about the Premier Partner program.
Blog | TabletPCPost.com | WhatIsNew.com| TabletQuestions.com | JumpingMinds Software
The point I was trying to make was that "browsing places" (as you so aptly name them) are of paramount importance, even if people don't ultimately buy there. It's not clear to me that the ultimate sellers themselves are of much importance at all, it's where people go to SEE new technologies.
The point I was trying to make was that "browsing places" (as you so aptly name them) are of paramount importance, even if people don't ultimately buy there. It's not clear to me that the ultimate sellers themselves are of much importance at all, it's where people go to SEE new technologies.
You are right. And I actually saw the only tablet I ever saw at Best Buy before I finally purchased my tablet. It was a Toshiba. I actually got the chance to swivel the screen and use it in slate mode. It was on a tether, but there was enough give to hold it as a slate. I only got to do that a couple of times though before the model was removed from the floor. It had probably been broken. I never saw it replaced.
It may be the only way for people to actually touch a tablet, but what motivation do these places have to put out new units to get broken when people are unlikely to buy them at the store anyway? I wouldn't have bought it at Best Buy.
Terri
THE Goddess of Go http://www.terriblue.com http://www.wingsgoclub.org NOT the Goddess of Tablets
USA
2858 Posts My Tablet PCs: Motion Computing M1200, Flex-dock. Pimped-out M1400VA
Posted - Jan 30 2005 : 4:10:28 PM
Microsoft had a really good method for displaying tablets at CES. They had these mechanical arms that allowed the tablet to angled in any which way and converted. You were able to use tablet as a notebook or as a tablet as the arm offered free reign. Additionally they had a pen tethered to each tablet. I think bestbuy and compusa will need to pick up some of these arms.
Microsoft MVP - Tablet PCs The Student Tablet PC - http://studenttabletpc.blogs.com
Still looking for the perfect convertible. I hope this new HP has been thoroughly thought through.
I have enjoyed my Gateway convertible, but it has not held up well (screen wobbles, it gets very hot and the latch is broken). If only the best features of the Gateway, Toshiba M200, and Fujitsu T4000 would come together in a machine based on the new Centrino chipset, that would be a great convertible!
Last week I was in Redmond and had an opportunity to talk with a manager from the Mobile Computing division at MS. He told me that an IBM-branded tablet convertible was coming soon (he had "held it"). Also, he wasn't too high on the new Toshiba Satelite converible saying it was strictly aimed at consumers and would not be good for someone who is business focused.
PC World: Microsoft Tries to Nudge Tablet PCs Into the Mainstream, new HP convertible 
Posted - Jan 29 2005 : 12:30:36 AM
Microsoft MVP - Tablet PC 
