Tablet PC shipments taste bitter pill

 

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By Matt Whipp

Posted on 30 Jul 2003 at 11:46

The European laptop market may be burning bright, but devices using Microsoft's Tablet PC software are not enjoying a similar reception. Less than 100,000 units have shipped since the November launch and figures for this quarter are down 23 per cent.

'For a leading-edge technology, vendors' tablet refreshes are not keeping pace with what's happening in the rest of the notebook market,' said Canalys analyst Rachel Lashford, 'Given the relative size of the segments and the 40 per cent growth notebooks are currently enjoying, the PC industry, perhaps more than ever before, needs to innovate, be seen to innovate and show commitment to those innovations, constantly improving them and delivering business benefits to customers, and it cannot do this without Microsoft's help.'

The figures, from analysts Canalys, put the total number of Tablet PC devices shipped in Europe, the Middle East and Africa (EMEA), to just 26,920, in spite of more companies bringing out more products.

It gives HP the lion's share with 28 per cent, but that only means the company saw 7,550 machines leave the factory bound for Europe.

Senior Analyst Chris Jones said: 'No-one expected Tablet sales to hit huge volumes overnight, but the shipments to date have fallen short of even the most conservative estimates and Microsoft needs to do something about it.'

The problem appears to be that most manufacturers have only one model of Tablet PC and that the benefits of its pen-based input and handwriting recognition in a device of this type are appreciated by a relatively small business sector. Moreover, this sector takes just 50,000 units a quarter in Europe and is relatively slow in making new purchase decisions.

To hit the mainstream, Microsoft will have to engage in some heavy persuasion. Lashford said: 'The fact that most vendors are only offering a single model and that Microsoft isn't pushing the concept as hard as it could, coupled with the absence of key vendors such as Dell, IBM and Sony, leaves potential buyers with doubts over the industry's commitment to the format, and those doubts will hurt sales.'

Canalys recommends Microsoft step in now in time for the next version of the operating system due later this year with funds to subsidise the cost of the OS, as well as aiding OEMs in their marketing of the products and encouraging a wider variety of Tablet PC devices.

It also suggests Microsoft engage in substantial Tablet PC marketing itself and set up a dedicated marketing team in EMEA.