Tough start for Tablet PCs in EMEA

While the notebook PC market in EMEA displayed dynamic growth of 19.5 per cent with nearly 3 million units shipped in 4Q02, the first quarter of EMEA Tablet PC shipments began more slowly with just over 20,000 units shipped during the same period.

Despite representing the second strongest region for worldwide Tablet PC shipments, a number of factors hindered stronger performance in EMEA:

- Vendors began shipping Tablet PC products at different times during the quarter, affecting overall results.

- The first release of Windows XP Tablet Edition devices has been limited to a small number of early adopters and vertical organizations, such as insurance and healthcare, many of whom were already users of tablet products.

- With an average price in excess of €2,000 * , it is not surprising that initial Tablet PCs failed to resonate with potential customers at a time when the main mobile computing focus rests firmly on price and performance, and while the entry level segment continues to drive the notebook market.

- A lack of broader language support limited shipments to major European countries (mainly Germany, UK, and France).

- The first version of Windows XP Tablet Edition, with updates and improvements expected throughout 2003, prompted a "wait and see" approach.

- A combination of both "slate" and "convertible" designs created uncertainty among IT decision makers who need to make decisions based on a product lifecycle spanning three to four years. · Ultra-portables in Europe represent only a small percentage of overall shipments.

- A number of Tablet PC vendors with a vertical focus have yet to ship products in EMEA.

- Economic uncertainty and an unstable worldwide political environment continued to affect business renewals.

According to IDC's most recent Survey of Business User Spending, which considers spending intentions for 2003, almost 60% of IT decision makers across all business sizes are not interested in purchasing Tablet PCs and almost 25% are not aware of the Tablet PC offering, with only a small percentage expressing a desire to purchase Tablet PCs in 2003. The launch of Intel's new Centrino processor may help to drive a stronger mobility message and focus greater attention on the importance of wireless roaming among information workers.

"It is not surprising that businesses have not immediately adopted Tablet PCs, with IT decision makers needing to see greater stability on the platform as well as a convincing return on investment (ROI) argument before deciding to implement them within an organization," commented Andrew Brown, Research Manager for EMEA Mobile Computing at IDC. "Nevertheless, it is too early to make any clear judgement on the future of Tablet PCs in EMEA," he added.