Tablet PCs won't come cheap

When a new crop of tablet PCs debuts in the US next week, they aren't likely to be cheap.

Prices of tablet PC models from Acer, Toshiba and Viewsonic, posted on the website of US retailer CompUSA this week, range from just over $2,000 to $2,500 (£1,280 to £1,600).

Toshiba's new Portege 3505 Tablet PC, for example, was described as coming with a 12.1-inch screen, a 1.3GHz Pentium III processor from Intel, both 802.11 and Bluetooth wireless networking, 512MB of RAM and a 40GB hard drive. The four pound device will sell for $2,499, according to the site. The company may offer a couple of less-expensive models with less memory or smaller hard drives as well.

Toshiba declined to comment for this story, but acknowledged that it had contacted CompUSA, which pulled the information from its site. silicon.com's sisiter site in the States, CNET News.com, viewed the information before it was taken from the website, and it is possible that prices or other details may change.

The Toshiba tablet is one of a number of new portable computers that use a specialised version of Microsoft's Windows XP that offers handwriting recognition, among other features. Toshiba, Acer, Fujitsu and Hewlett-Packard are scheduled to release devices based on Windows XP Tablet PC Edition on 7 November.

Microsoft has been working on its conception of tablet PCs for more than two years in a bid to create a more functional portable computer that people can operate using a pen. Many of the details about it, such as the features in the operating system software, have already been revealed.

But so far manufacturers have been mum on price. Some, such as HP, have said their tablet PCs would cost roughly $200 more than a similarly sized "ultraportable" notebook PC. That premium would put most devices based on Microsoft's Tablet PC software into the $2,000-and-above range, whereas the average selling price of a consumer notebook is about $1,475, with the most popular models running between $1,200 and $1,500. Businesses tend to be willing to spend somewhat more.

As a result, the relatively high prices on tablet PCs could limit the new computers to a small group of well-heeled consumers and business customers at first, analysts have said.

A computer with price is as high as $2,000 is "a person's primary PC. The hybrids (or convertible tablet PCs) will aim for the high-end notebook user who can spend whatever he wants on it - and just wants another feature," said Matt Sargent, an analyst with ARS. A $500 tablet device, on the other hand, would serve as a good companion to a PC.

"Businesses will consider them" as well, Sargent said. "I think it makes sense... if you have applications where you have people out doing lots of data entry within 802.11's range, then it does make sense."

Tablet PCs such as Toshiba's are expected to begin shipping in the latter half of November. Most will come in one of two form factors - a traditional tablet and a convertible.

Toshiba's tablet PC is similar to other models in the company's Portege line of lightweight notebooks. But it's distinctive in that it's what Microsoft calls a "convertible" - it functions like a traditional notebook, but its 12-inch screen can also rotate 90 degrees, fold down and lock in place to create a tablet.

HP's device, the Compaq Tablet PC TC1000, will have a 1GHz Crusoe TM5800 processor from Transmeta. It will also be convertible, sources familiar with the company's plans said.

Acer also will have a convertible design that can be used like a regular notebook and like a tablet, while others such as Viewsonic and Motion Computing are expected to offer fixed tablet-style products.

John G. Spooner writes for News.com