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Tablet PC in trouble--Microsoft blamed

malebolgia   on 07 November 2003 - 16:47 · 75 comments & 970 views

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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. Chris Jones, senior analysts and director at Canalys, said that Microsoft isn't doing enough to help Tablet PC vendors, particularly in Europe: "Rather than pricing the Tablet PC OS at a premium, adding to the vendors' costs and the end-user price, it should be doing the opposite: subsidizing the vendors to help them get the market up and running," he said in a statement.

Last week, Acer's president Wang Chen-tang also pointed the finger at Microsoft for charging too much: "Microsoft should put more effort into working with vendors in marketing tablet PCs," he said as the No. 2 maker of tablet PCs admitted it had sold only 100,000 units in a year, which is just 5 percent of its overall notebook sales. In Europe, the picture is even worse, with less that 100,000 units shipped in total during the year. According to Canalys, HP is the leading vendor, having shipped around 28,000, which makes up 31 percent of the market. Acer comes in second with 23 percent and Toshiba is third with 16.5 percent. Overall, in Q3 of 2003, shipments fell by 20 percent compared to the previous quarter.

News source: ZDNet


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#1 radixvir on 07 Nov 2003 - 17:16
they came 10 years too early. the cost needs to be about $500 and they need to be lighter
(5 replies) #2 MadDog on 07 Nov 2003 - 17:35
Microsoft's fault? I don't see MS holding a gun to their heads, demanding they charge $3,000 for an underpowered "laptop". The OS is not what's making these devices so freaking expensive, it's the hardware manufacturers trying to make a fast buck on a new technology. Unfortunately, it was released during a slow economic period. They need to lower their prices to about $800-$1200.
#2.1 werejag on 07 Nov 2003 - 17:56
well said as a microsoft fanboy.

microsoft is partly to blame for the price. hardware prices too. both need to lower there prices.
#2.2 quanta on 07 Nov 2003 - 18:18
Agreed, at least one tablet manufacturer (Acer) had gone on record with CNET by stating the high cost is mostly due to Microsoft's Windows XP Tablet PC Edition licensing fees. Although I'm guessing trying to cram a usable Pentium III-900 system into such a small size doesn't help.
#2.3 NeoSoft on 07 Nov 2003 - 20:49
Well said!
#2.4 Kestrel on 08 Nov 2003 - 16:53
Which is total crap considering the average price a vendor pays for a Windows OS on a system is in the $50 range. Even if Microsoft were charging $400 / license, the hardware is over-priced and under-powered. What you're paying for is the condensing into a smaller form-factor and the high-priced active-digitizer LCDs.
#2.5 tuxracer on 08 Nov 2003 - 21:28
The reason Microsoft is being blamed is because they so vigerioiusly pushed hardware makers to produce these devices, and doing so by hyping up how successful they will be. So they agreed, made some devices, and now, in contradiction to what Microsoft insisted would happen, they didn't sell worth ****. Microsoft didn't just make a tablet OS, they were very agressive in their efforts to get hardware makers to create the devices for it to run on, promising them the sky in the meantime. While those promises fell through, they blamed Microsoft.
(11 replies) #3 aristotle-dude on 07 Nov 2003 - 18:06
MS is to blame for:
-price of OS
-pushing this technology for which there is no market and the technology is not ready

Who needs an overpriced and underpowered tablet when you can just use a laptop?
#3.1 ghostrider on 07 Nov 2003 - 18:19
"-pushing this technology for which there is no market and the technology is not ready"

That's what people said about windows. Now most of those companies are gone or much smaller. MS should be credited for taking a technology risk.

Also, how is the technology not ready?
#3.2 werejag on 07 Nov 2003 - 20:33
simply put the cost for the OS and hardware is not ready to replace the tablet as Microsoft claimed at the launch.


#3.3 SomeDork on 08 Nov 2003 - 07:58
Microsoft didn't claim anything, the only thing they did was push a technology offering.
#3.4 werejag on 08 Nov 2003 - 12:17
well they did at the luanch event.

#3.5 SomeDork on 08 Nov 2003 - 19:14
(werejag mode: ON)

Did not!
#3.6 werejag on 09 Nov 2003 - 02:29
(SomeDork mode: ON)

oh i love microsoft and they can do no wrong, harray ballmer, bill gates thy love.


#3.7 SomeDork on 09 Nov 2003 - 09:08
Actually, to be more topical here, I claim that Microsoft pushed a product offering. They did. They didn't claim anything other than "if you build it they will come." Maybe that didn't happen, but that isn't exclusively the fault of Microsoft.

It's people like you (werejag) and the originator of this reply thread who assume that the tablet is the defacto laptop replacement.

If you want to say that, then sure: it's a horrible terrible failure when compared to Laptops. The reality is that tablets are a totally different market. It's people like you, buyers like you, and manufacturers who share opinions like yours who cause their own failure by not playing to the correct market.

I don't love gates or ballmer or anyone else, I just call it like I see it. Your best responses are always "you're wrong!" with some really bad english or spelling. I'd respect you a bit more if you had even one semblance of fact to back up your claims. Historically that's been a challenge. You appear to be here to simply "stir the pot" and mock people.

Microsoft has never claimed what you insist they did. They provided the OS and contributed to the basic framework of the platform just as many other vendors continue to do.
#3.8 werejag on 09 Nov 2003 - 12:46
somedork,

during the launch Microsoft claimed alot of things like it was defacto laptop replacement and how it was going to revolutionize automation, productivity etc. this are claims Microsoft did.

never claimed it was exclusively the fault of Microsoft. but the marketing and claims at the launch was exclusively the fault of Microsoft.

everything Microsoft does is like "if you build it they will come." in their minds. xbox is a current example the developers are not building to many xbox games even thou xbox was suppose to ez to program.

the rhetoric of Microsoft is what all this comes down to, people are seeing Microsoft for what they are.
#3.9 JaggedFlame on 09 Nov 2003 - 15:57
QUOTE
during the launch Microsoft claimed alot of things like it was defacto laptop replacement and how it was going to revolutionize automation, productivity etc. this are claims Microsoft did.


Sure didn't happen at my launch event. Yeah, it did revolutionize productivity for some people. They never said the Tablet PC was for everyone. They never said everyone was going to drop their laptop and buy a Tablet PC. Maybe you're just hearing what you want to hear.

QUOTE
xbox is a current example the developers are not building to many xbox games even thou xbox was suppose to ez to program.


WTF? No. You're completely wrong. There are tons of Xbox games that developers are porting and creating.
#3.10 werejag on 10 Nov 2003 - 10:39
well surely not at my walmart
#3.11 JaggedFlame on 10 Nov 2003 - 14:13
I was at Wal-Mart last week, and the Xbox section was just as large as the PS2 and larger than the Gamecube section.
#4 sodapop on 07 Nov 2003 - 18:28
Bah, Nobody needs this type of crap yet anyway. And it shows.
(14 replies) #5 Neb Okla on 07 Nov 2003 - 18:39
Funny to see such negative speculation at a time when the jobless rate is down, consumer confidence is up, and companies in the high-tech manufacturing sector like mine have their procurement people being led around the building like ducks by armies of Tablet PC vendors.

Whoever wrote this article is basing it off of old numbers and speculation - not on what's happening in the field right now - and the same goes for you posters who back up this drivel. Lamers. All of you.
#5.1 werejag on 07 Nov 2003 - 20:35
the numbers dont, lie unlike you

stop being a fanboy and pull head out of the sand
#5.2 MadDog on 07 Nov 2003 - 20:43
Warejag - You really need to get out more, vary your activity. And if for some reason you're homebound you need to surf more sites than slashdot and NeoWin.
#5.3 werejag on 07 Nov 2003 - 21:11
so i should go to more book burnings like you do?

so prove me wrong or is this all you got, the insults

#5.4 Neb Okla on 08 Nov 2003 - 04:54
QUOTE (#5.1)
the numbers dont, lie unlike you

So I'm lying eh?

I said "consumer confidence is up". Here I submit proof:
Economy's growth best since 1984

I said "the jobless rate is down". Once again, I submit proof:
Jobless rate drops to 6 percent

So far, two out of three ain't bad IMHO.

The last thing I said was "companies in the high-tech manufacturing sector like mine have their procurement people being led around the building like ducks by armies of Tablet PC vendors."

Are you employed in the North American Headquarters for a large corporation (as I am) where you can see and talk to the procurement people on a daily baisis? If not, then you probably aren't in a position to refute my assertion that this kind of thing is happening.

I've offered enough proof that I'm telling the truth, so why don't you dispense with the ad hominem fallacies and form a coherent argument to support your assertions?
#5.5 werejag on 08 Nov 2003 - 06:42
QUOTE
Whoever wrote this article is basing it off of old numbers and speculation - not on what's happening in the field right now - and the same goes for you posters who back up this drivel. Lamers. All of you.


i see no talk about this in your post. i wounder why.

are you a christian fundie by chance? that would explain alot.


as i said with or without your 2 steping, the poor numbers of sales dont lie.

#5.6 clonk on 08 Nov 2003 - 08:18
werejag, are you a dumbass jerk0ff by any chance? that would explain alot.

You love to play the religion card when it has no point or justification. Do you run out of other general worthless things to say and then use this as your crutch until you think of another fanboy quip?

You have no idea what you are talking about, you are a self proclaimed master of all. Tablets are hot. Neb is very much right. I will make sure to make you feel like a total moron like you are trying to do to Neb when in the next year the exact opposite of this headline is posted.

You can wait in your hole until then and brood. You won't be missed.
#5.7 werejag on 08 Nov 2003 - 12:25
ok write this post down.

if tablet pcs double there market share share in exaclty one year ill buy you one if not you will buy me one of my choice. acer is an example 5% of there sales if there is 10 %

want to take this bet?
#5.8 JaggedFlame on 08 Nov 2003 - 17:18
Why would anyone, when you're pretty much making the assumption that something has to double its market share to be successful?
#5.9 SirEvan on 08 Nov 2003 - 23:37
damn werejag you are a bible thumper aren't you.. this is the 2nd time I’ve seen you make a post related to religion... leave it at the door next time. You love calling other people fanboys... when you yourself are a religion fanboy.... just another case of the pot calling the kettle black I see.

Last edited by 26332 on 09 Nov 2003 - 17:44
#5.10 werejag on 09 Nov 2003 - 02:33
sireven if you dont understand something raise you hand boy.

i never claimed to be a religion fanboy, my example was most nuts come from religion and since he is a nut for microsoft i asked if he was a christian nut.

why dont you prove the numbers wrong, concerning tablet or is this all you got boy?
#5.11 aaron901 on 09 Nov 2003 - 03:49
werejag shut the hell up, you're just spouting BS. the fact that you have to buy thing based on market share is so pathetic and obviously you want a tablet but you are just so damn poor that you have to trick others to buy one for you. get a job loser.
#5.12 werejag on 09 Nov 2003 - 12:47
huh

whatever kid
#5.13 JaggedFlame on 09 Nov 2003 - 15:58
Yes, werejag, it's English. No wonder you never understand anything. It's called reading.
#5.14 SirEvan on 09 Nov 2003 - 17:43
First of all, It's SirEvan.. Not sireven... learn to spell. Second, I was referring to how you always seem to post with some religious crap. This is at least the second thread I've seen you say something religious.... You're free to believe what you want, but please leave your Jehovah’s Witness crap at home next time... k?
#6 AshMan on 07 Nov 2003 - 19:01
That's what I predicted when they were launched.
#7 brundlefry on 07 Nov 2003 - 19:17
Yeah, and what's with this wisptis.exe that keeps showing up in my processes?

It's for Tablet PCs but I don't have a Tablet PC, just XP.

I think it started with MSN Messenger 6.1 (for recognizing Ink).

I like minimum number of background processes!
#8 aristotle-dude on 07 Nov 2003 - 19:18
I also had predicted that tablet sales would never take off. MS made the same mistake as Apple did when they came out with the Newton before PDA's were popular.

The problem with the tablets is that the OS is not mature and differentiated enough from laptops so you get nothing for the trade off of lower speed and less expandability.

Apple was smart to stay away from the tablet market and concentrate on laptops.
(3 replies) #9 Jstphish on 07 Nov 2003 - 19:41
I wouldn't totally blame MS for the Tablet PC's not taking off. If you have ever messed with one you would know the screens look like they have a film over them which kills the resolution and they aren't light enough.
#9.1 werejag on 07 Nov 2003 - 20:36
film over them is the watcom interface (aka the inking surface)

#9.2 clonk on 08 Nov 2003 - 08:36
Hahaha

The 'wacom interface' you speak of is under the LCD, there is no special film required. Tablet PC's use active digitizers.
#9.3 werejag on 08 Nov 2003 - 12:27
haha watcom needs that texture to improve digitizing


#10 paulhaskew on 07 Nov 2003 - 22:38
i like the one from gateway, was going to get it, but, i found a laptop with the same specs for $700 less...
#11 Ev1lg0at on 07 Nov 2003 - 23:59
I dont and never was too exited about the tablet pc idea... its still not mature enough to invest such big sums of money in. Just a shame that nowadays everything is blamed on Microsoft...
#12 aristotle-dude on 08 Nov 2003 - 00:09
This is blamed on MS because MS was the big pusher for tablets. They were the driving force behind them. Someone should have done some market research on this first before creating a product for which there was no market.
(1 reply) #13 Toekiller on 08 Nov 2003 - 00:14
So MS are charging the tablet makers 800$'s for their Tablet OS. I mean how else do you explain the price diference. Yeah that must be it.



#13.1 dp123 on 08 Nov 2003 - 01:08
Did you ever consider that small volumes of high cost parts (chips with lower heat dissipation, wireless chipsets, wacom tablet interface) creates an even higher cost for these OEMs because MS promised them it was going to be a huge market and a new boom apart from the PC market. That MS certainly can be blamed for... MS said: we've built the spec, now you build it, and they will come. But they aren't coming, which leaves these OEMs with unsold inventory or high product costs because they can't achieve volumes.

But in truth, MS is charging higher licensing costs and there is the volume issue (both in respect to licensing and high cost parts)... you've got ten or so small, crappy Asian OEMs building products that account for 1% of the notebook. Surely some of these OEMs are leading a bit, but that's .1% of the notebook market. how do you reduce cost when the market that MS promised isn't there?

On top of that, MS is charging higher costs but this was their initiative, their great promise... if someone isgoing to suck it up, they should.

Another aspect in which MS can be considered responsible is licensing the spec to so many crappy little vendors. This applies more pressure on every OEM while raking in more cash for MS. If MS just signed up the four biggest OEMs, they'd have better economies of scale and better success. And it would have probably resulted in better product recognition as well.

I see nothing wrong with blaming MS.
#14 pixlnet on 08 Nov 2003 - 00:15
tablets will be good when the price comes down.
(4 replies) #15 aristotle-dude on 08 Nov 2003 - 00:25
*Sigh* You people don't get it. These tablets are not just a laptop but a laptop with a high quality watcom interface on top of the screen for drawing on. That would account for some of the cost difference in addition to cost differences between OSes.

People expecting prices of less than $900 dollars US are smoking some fine crack. You cannot shove a laptop motherboard into a tablet formfactor without making mods to it.
#15.1 KCKitsune on 08 Nov 2003 - 12:12
OK Aristotle, I went to Tigerdirect.com and did a little pricing

Futurecom NETA 1000 / Crusoe 800-1000MHz / 20GB / 256MB Price: $1499.99
http://www.tigerdirect.com/applications/SearchTools/item-details.asp?EdpNo=626355&Sku=F356-3400&CatId=219

HP Pavilion xt4345qv / AMD XP-M 2000+ / 512MB / 40GB / DVDROM Price: $999.99
http://www.tigerdirect.com/applications/SearchTools/item-details.asp?EdpNo=660463&Sku=L250-4036%20P

The Futurecom Tablet has a 10 inch screen, the HP has a 15 inch screen.

Now with the above information can you HONESTLY say that the Tablet PC makers are charging a fair price? If you do then companies woud LOVE you!
#15.2 SomeDork on 08 Nov 2003 - 19:21
That's a fair argument... but unfair if you consider the technology.

Why do PDAs cost 300 bucks when I can get a new whole desktop computer for a wee bit more? Do you honestly think that PDAs are better than full pentiums, that are fully expandable?

No, of course not, and the consumer shouldn't either. The key word is "Shouldn't". There is the assumption that a tablet PC is as expandable (barely) as a notebook PC or maybe even a desktop PC, but in reality it suffers from almost HALF the form factor of the laptop PC. It needs that in order to create it's market!

Remember, the smaller the technology the more expensive the cost... especially when it gets as dense as a tablet.

Can the notebook machine you compared remove it's keyboard and operate with just the monitor section and the screen?
How does the weight compare?
How does the power consumption compare?
What's the longest lasting available single battery?
Do I have to sit down to type?
Can I manipulate data "on the go"?

All of those questions ultimately lead up to a technology that is ultimately better due to the form factor, but worse in the eyes of the consumer who only see it as follows:

"Hm I can get a computer that's faster or slower. I'll get the faster one!"

The tablet PC has a niche, but it needs to get better anyway. There are people who ask those questions I asked above and actually choose the slower machine because it offers more to them in the form of productivity.
#15.3 SirEvan on 08 Nov 2003 - 23:43
When was the last time you were able to scribble on your 15" laptop screen?


Case proven.
#15.4 darkmark327 on 09 Nov 2003 - 00:11
And now thanks to Pentium M, they're not so slow at all anymore

I'm just waiting for the new HP model (the one that's the best of both form factors...it's a slate with a removable keyboard) to come out...yes it's more expensive but the flexibility is well worth it.

Smart Displays on the other hand...gimme a break...they're upwards of what, 1500 bucks for a 10 inch screen? For a few bucks more you can just buy a cheap tablet and use Remote Desktop, same difference.
(12 replies) #16 Gary_Player on 08 Nov 2003 - 01:42
Its cuz theyre overpriced and they're lame
#16.1 BoondockSaint on 08 Nov 2003 - 06:50
Let me guess, you have never actually used one...
#16.2 werejag on 08 Nov 2003 - 07:15
let me guess BoondockSaint neither have you.

they are hot temp wise and heavy.
#16.3 SomeDork on 08 Nov 2003 - 08:03
You've tried them all, have you..?
I actually have one, and you're spouting BS.
#16.4 werejag on 08 Nov 2003 - 12:30
ive tryed a majority of them , that was one of the things one does at a luanch event.

and ive tryed a few more since, nope wont own one till you buy me one
#16.5 SomeDork on 08 Nov 2003 - 19:24
Walking into a compusa and "trying out" any technology doesn't make you an expert, werejag.
#16.6 werejag on 09 Nov 2003 - 02:42
so true, but this is not who made their thesis paper about "how tablet xp will be the device of the world"

here is an analogy (an example why i could know enough about tablets)

QUOTE
i know drugs are bad, even thou Ive never used them.


so you contention that i must own a piece of crap modified laptop. to voice the reasons that they suck ,is stupid and you know it.

#16.7 SomeDork on 09 Nov 2003 - 04:09
No it's not stupid. The tablet fills a niche that is somewhere between a PDA and a laptop, but it is NOT a LAPTOP. The mere fact that you place it in that category is a dead giveaway that obviously you won't like it. But that's not it's purpose.

Not all drugs are bad. It's just a mantra we feed our kids because generally speaking, the only medications they use are bad ones. The reality is that as we get older, we'll TAKE DRUGS. And on the same analogy, they aren't bad, they're filling a niche market that needs specific issues addressed.

I know that the Pinto is a sucky car, therefore all cars are bad.

BTW -- and I know this would be hard for you, as you've never substantiated any "fact" you've ever stated -- show me a link to the paper you quoted.
#16.8 BoondockSaint on 09 Nov 2003 - 04:58
I've got the Acer C110 right here, and its great.... the wireless is flaky sometimes, but otherwise I dont have any complaints.
#16.9 JaggedFlame on 09 Nov 2003 - 16:00
QUOTE
here is an analogy (an example why i could know enough about tablets)


The difference, of course, being that when you're talking to someone with actual, real experience (i.e. someone who OWNS a Tablet PC), you recognize that you're outclassed and admit you're wrong when you are.

Which is not something you're doing. Congratulations.
#16.10 SirEvan on 09 Nov 2003 - 17:47
owned
#16.11 werejag on 10 Nov 2003 - 10:41
ah i stand corrected, so i must do drugs to know they are bad.
#16.12 JaggedFlame on 10 Nov 2003 - 14:15
If you say so. We already shot that example down, but I guess you just want an excuse to get high.
#17 iomayho on 08 Nov 2003 - 06:51
the technology i think is what is not ready..., not that the market is not ready for the technology
until chips can be made smaller, and the tabletPC made thinner and lighter (the current size and weight is still too much ), it won't take off.... a pen and a paper is much lighter and effective in writing down notes and stuffs than the tablet PC...,
#18 vetmalebolgia on 08 Nov 2003 - 07:00
I still can't see the real use of owning one maybe it's just me
#19 aaron901 on 08 Nov 2003 - 11:00
good technology, bad hardware manufacturers. nuff said.
#20 rocks1985 on 08 Nov 2003 - 14:43
I think the tablet would do much better with an Operating System like Mac OS X. its Menu Bar on top and Magnifying dock make much more sense on a tablet-- especially since the pen can float above the tablets screen 3 inches and still magnify icons in the dock -- a much better task managment system than windows can offer. Tablets need a more liquidy OS...graphics wise..and screens need to be MUCH brighter and they need to be much thinner hardware designs...or else users have trouble using them to replace paper...which is what they should be all about...the Paperless office/ classroom/ university...
#21 serchend on 08 Nov 2003 - 18:04
our company is just finishing a trial of 100 tabletpc's and plan to roll out a few thousand in the next couple of months. I have talked to many companies who are in a similar position. In my opinion the industry will take off this year. companies move slow, the need to evaluate, determine support needs and the wait for second generation models. microsoft new office 2003 has support for the tabletpc's, the second generation models are hitting the shelf and companies that have been testing this and have put money into their budget for the coming year. I think the coming year will be a good one for the tablet and the year after will be even better.

BTW this response was hand written on a tablet.
#22 matric on 08 Nov 2003 - 23:41
I would love a tablet PC, but alas cost is a factor.
Alot of people have forgotten the technology process that happens. Initially products are expensive, and only enthusiasts purchase them.
When they gain in popularity, since people see the value, demand increases. As demand increases, overall costs of producing the product begin to go down. Lower costs push up demand even further. Take DVD Players as a recent example of this.

This is common knowledge, and many here seem to have forgotten that. Is this because we are discussing a Microsoft product?
#23 b0zm4g on 09 Nov 2003 - 12:42
Tablet PC's suk anyway
(1 reply) #24 mcguirexn on 10 Nov 2003 - 01:50
I'm on a Tablet PC right now. I am a 10th grader at high school. I use my tablet to organize my life. I carry it in my backpack everyday and use it in almost every period. It has a 2.6 GHz processor, 512 MB ram, 40 GB hd, impressive graphics, wireless internet, and best of all, the tablet functionality to do my math homework in, to copy down chemistry notes, and to keep track of my AP World History. It's great to be able to use a pen in Photoshop--now I find it frustrating to use it with a mouse on my desktop. I think this Tablet PC is perfect. It does everything I need plus more. It is an Acer TravelMate 250PE.
#24.1 mcguirexn on 10 Nov 2003 - 01:51
oh and it only cost me $1499

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