Jun 04, 2013

    HTC scales back Windows tablet plans

    HTC has scrapped plans to introduce a full-sized tablet computer with Microsoft's Windows RT operating system, on concerns that demand for it will be lacklustre, according to people familiar with the matter.

    HTC decided not to make the device because it cost too much and demand for RT machines has been weak, said one of the sources, who asked not to be identified because the plans are private.

    The company still plans to release a 7-inch tablet running the software - a version of Windows 8 for chips based on ARM Holdings' technology - later this year, the sources said.

    A tablet with a screen size of about 12 inches was too pricey in terms of both components and what HTC would have to charge customers, one of the sources said.

    The company expects lower costs and higher demand for the smaller tablet, to be delivered around September or October, according to the source.

    HTC chose Qualcomm's Snapdragon processor for its tablets, the source added.

    In an e-mail response to Bloomberg News, HTC said: "We don't comment on rumours or speculation."

    HTC is focusing on its One smartphone, which runs Google's Android mobile software, seeking to reverse a decline in global market share to 2.4 per cent in the first quarter, from 4.5 per cent a year earlier, according to research firm IDC.

    HTC also plans to sell a 7-inch tablet based on Android around the same time that the Windows RT version is introduced, the source said.

    Microsoft and its partners have released five Windows RT devices since last October.

    The RT operating system was aimed at helping Windows tablets compete with Apple's iPads, which use ARM-based chips for longer battery life and thinner, lighter devices.