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Old Jul 10, 2003, 03:52 PM   #1
Dom
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IBM and Toshiba may launch low-priced Tablet PCs

IBM and Toshiba may work with notebook companies in Taiwan to launch low-priced Tablet PCs, according to sources at Taiwanese notebook makers.

The two computer giants have been in frequent contact with some Taiwanese notebook makers for potential orders of Tablet PCs with retail prices to be set at around US$1,299, according to sources.

The moves are widely seen by the local notebook industry as much-needed recognition of the Tablet PC market, which has experienced faltering sales despite high expectations in the beginning. Both major Tablet PC vendors, Hewlett-Packard (HP) and Acer, were reported to have suffered from plunging global Tablet PC sales in early 2003.

According to sources, Acer’s Tablet PC sales now account for less than 10% of the company’s total notebook sales, while HP’s Tablet PCs contribute only 2-3% of the company’s notebook shipments.

Relatively high prices are the key reason behind the lukewarm market response. In addition, Microsoft, a major sponsor of the Tablet PC, has not given hardware companies as much support as it originally planned, sources said.

As the gap between the production costs of Tablet PCs and regular notebooks is expected to narrow to US$100-200 in the second half of this year, it will be more plausible to have low-priced Tablet PCs and demand should increase, said local notebook makers.

Both HP and Acer expect to launch new Tablet PCs this summer, according to sources. HP expects to launch its second 10.4-inch Tablet PC, manufactured by South Korea-based LG Electronics (LGE), while Acer will introduce a 14.1-inch Centrino-based Tablet PC, the TravelMate 240, with a price tag of about US$1,000.

Wistron is currently producing the TravelMate 240 and will manufacturer a 10.4-inch Tablet PC for Acer in the second half of the year. The 10.4-inch Tablet PC is set to have a price of around US$1,299, sources said.

In addition, Taiwan-based First International Computer (FIC) plans to launch a 12.1-inch Tablet PC allowing both handwriting and keyboard input in October or November. The model is expected to cost around US$1,299.

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Source: DigiTimes
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