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Tablet PC Update the TPC Team TPC Technologies Hardware Oems What’S Next?

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Tablet PC Update � � the TPC Team � � TPC Technologies � � Hardware Oems � � What’S Next? PCM 044, Tablet PC insert 3/12/02 10:11 AM Page 3 L L Tablet PC Update L L The TPC Team L L TPC Technologies L L Hardware OEMs L L What’s next? www.tabletpcmagazine.com spring 2002 volume 1 issue 1 IN THIS ISSUE: HOW WILL THE TABLET PC 2002 Technology update Convertible vs “Pure” Tablet WORK FOR Compaq Tablet PC YOU? Prototype Interviews with Tablet PC movers and shakers POWERED BY PEN COMPUTING How is the Tablet PC MAGAZINE different from the COMING SOON TO A NEWSSTAND Notebook?Notebook? NEAR YOU PCM 044, Tablet PC insert 3/12/02 10:11 AM Page A2 UPDATE By Geoff Walker Tablet PC Update Lots of CHANGES AT A GLANCE MANY CHANGES HAVE TAKEN PLACE IN THE TABLET PC publicity, PROJECT DURING THE EIGHT MONTHS SINCE THE FIRST yet Microsoft ARTICLE. The important changes can be summarized as follows: G Microsoft has made minor changes in the Tablet PC positioning plays it close G More OEMs and ODMs have joined the project and announced to the vest. their intentions G A number of OEMs and ODMs showed hardware prototypes at Here is Comdex 2001 what has G “Windows XP Tablet PC Edition” was announced at Comdex 2001 happened G XP Tablet was promoted from an “add-on” to a full-fledged with the version of Windows G The Beta-1 version of XP Tablet and the associated SDK were Tablet PC released in October since the G Microsoft published the Tablet PC Hardware Require- ments document initial Tablet All of the changes can be grouped into four major categories: (1) marketing, PC feature (2) the Tablet PC OEMs & ODMs, (3) software, and in the (4) hardware. July 2001 Tablet PC is now positioned as a MARKETING “pure superset of today’s laptop PCs.” The Tablet PC marketing issue of Positioning team is making sure that the The Tablet PC is still the “evolu- Tablet PC is not seen as a “laptop Pen tion of the laptop,” but there have without a keyboard,” as I de- been subtle changes in scribed it in July 2001. The Tablet Microsoft’s messaging. The PC is now clearly identified (e.g. Microsoft’s Eddie Wu and Robert Williams Computing A2 PCM 044, Tablet PC insert 3/12/02 10:11 AM Page A3 in the FAQ on the Microsoft ing pure tablets. In retro- PCs to sell in the range of $1,600 website) as having “attahced or spect, perhaps Microsoft to $2,300. detachable keyboards.” The should have tried even • In a story in eWeek, Ted following extract from the Mi- harder than they did to get Clark, vice president crosoft Tablet PC website clearly more OEMs to build convert- of the Tablet PC illustrates the new positioning: ibles. (See the sidebar on group at Compaq, “First and foremost, the Tablet convertibles for a brief history said that he PC is a pure superset of today’s of the convertible genre.) expected Compaq’s laptop PCs. In fact, many Tablet Tablet PCs to cost several hundred PCs will look exactly like today’s Target Market dollars more than a comparable traditional clamshell designs In Alex Loeb’s Tablet PC strategy laptop. complete with a full keyboard but presentation at WinHEC 2001, she • A story on ZDNet reported that will have a mechanism that identified the “corporate worker OF INTEREST Tablet PCs are expected to cost converts the hardware into a [who] spends a significant about $2,000 and may come down slate form. Others will have a amount of time away from [their] “We see the in price as manufacturers increase pure slate form factor. Regard- desk in formal or informal meet- volumes. less of the design, Tablet PCs will ings” (a corridor cruiser) as majority of • Bill Gates, in an interview with be among the most mobile PC “Microsoft’s first focus.” In light Information Week, said he expects ever made, with exceptionally of Microsoft’s current emphasis portable PCs that most computer manufacturers long battery life, light weight, and on the Tablet PC as a “pure will price their Tablet PCs in rough- many with built in wireless capa- superset of today’s laptop PC,” I ly the same range as today’s busi- bility. But the Tablet PC is more believe that Microsoft’s “first shipped to be ness laptops. than just a great laptop. It also focus” has shifted to the road Based on all available informa- enables users to run Windows warrior who wants to replace Tablet PCs within tion, it seems very clear at this and Windows applications using their existing ultraportable lap- point that essentially all of the a pen, annotate documents, tops. This belief is supported by five years.” Tablet PCs currently under devel- create handwritten documents Alex’s statement in the Q&A on Alex Loeb, Microsoft using “digital ink” for later refer- page A13 that “many will see ence or even conversion into the value in replacing their text. Just like today’s portable current laptops [with Tablet PCs, Tablet PCs can be put into a PCs] right away.” docking station at a desk to support a large screen monitor, Pricing mouse and full size keyboard. When asked about pricing, Either as a pure slate or as a Microsoft always says that convertible model the Tablet PC Tablet PC pricing will be deter- is the evolution of the laptop – all mined solely by the OEMs the functionality of a laptop with (which of course is true). A few added Tablet functionality.” relevant comments on pricing The positioning is especially appeared in the media shortly obvious when Microsoft market- after Comdex 2001, as follows: ing managers use the Acer proto- • In a story in Computerworld, type convertible (first shown by David Lee, director of mobile Bill Gates in his Comdex 2001 product marking at Taiwan- keynote) as their primary demo based Acer, said he expects machine. A single sample of that the machines to sell for less prototype is worth thousands of than $2,000. A story in PC World words. It’s so obviously a laptop, said that Acer expects to price and yet, when the screen is its convertible Tablet PC at flipped around, it’s a pure tablet about the same as a laptop with (slate). It brings home the “super- a 10-inch display. set of the laptop” message so • In the same story in Comput- strongly that it makes me feel a erworld, Kyle Thornton, a prod- little sorry for the majority of the uct marketing manager at Mike Hockey shows Compaq Tablet PC concept at Fall Comdex 2001 Tablet PC OEMs who are creat- Fujitsu, said he expects Tablet www.tabletpcmagazine.com Tablet PC Spring 2002 PCM 044, Tablet PC insert 3/12/02 10:12 AM Page A4 opment can be categorized as TABLE 1: CONVENTIONAL ULTRAPORTABLE LAPTOPS “ultraportable laptops” from the viewpoint of size, weight, CPU MODEL THICK (IN.) WEIGHT LCD (XGA) CPU STREET PRICE MHz and screen size. Table 1 lists ten ultraportable (business) Compaq Evo N200 0.8 2.5 lbs 10.4" 700 MHz ULV P3 $1,821 laptops currently on the market, Compaq Evo N400c 0.9 3.5 lbs 12.1" 850 MHz P3 $2,110 along with their basic specifica- Dell Latitude C400 1.0 3.6 lbs 12.1" 1.2 GHz P3 $2,638 tions and street price as of Dell Latitude L400 1.0 3.4 lbs 12.1" 700 MHz P3 $2,296 January 2002. The average of Gateway Solo 34350 0.8 3.8 lbs 12.1" 750 MHz P3 $1,878 these ten ultraportable laptops is a 0.9-inch thick unit weighing HP Omnibook 500 1.0 3.5 lbs 12.1" 700 MHz P3 $2,623 3.3 pounds with a 12.1” LCD and KDS ThinNote 376CH 1.0 3.2 lbs 12.1" 600 MHz P3 $1,326 a 770 MHz Pentium III, costing Sharp PC-UM10 0.7 2.9 lbs 12.1" 600 MHz ULV P3 $1,758 $2,083. This average is a very Sony PCG-R505 1.0 3.8 lbs 12.1" 850 MHz P3 $2,135 reasonable target expectation Toshiba Protege 2000 0.7 2.6 lbs 12.1" 750 MHz P3 $2,199 for the first crop of Tablet PCs. Average 0.9 3.3lbs 12.1" 770 MHz P3 $2,083 Notes: All laptops are configured with 20 GB HDD and 256 MB DRAM Volume Estimates Street prices are midpoint of range reported by search engines as of 1/21/02 Anticipated volumes are harder Some adjustments could be made to the average cost shown above. For example, while the con- to nail down than anticipated tract price of a 12.1” XGA LCD in Taiwan today is about $170, the contract price of a 10.4” XGA LCD pricing. Synthesizing all the is about $200 (that’s right, it’s $30 higher, even though it’s smaller, due to much lower production information I’ve collected over volume). In addition, the contract price of an active digitizer is around $50. If the Tablet PC is a the past eight months from convertible, there might be a few extra dollars for the special hinging mechanism. All told, there’s OEMs, ODMs, ISVs, Microsoft probably roughly $100 incremental material cost for a 10.4” Tablet PC compared to the ultraportable laptops in the table. If the Compaq Evo N200 (for example) were to be turned into a Tablet PC, that and many other sources, I would mean a street price of about $2,000.
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