January 07, 2010

Microsoft Corp. (MSFT) Chief Executive Officer Steve Ballmer introduced a touch-screen tablet computer from Hewlett-Packard Co. and said U.S. sales of PCs running Windows jumped 50 percent over the holidays.

The computer will go on sale this year and was one of several machines that Ballmer showed off last night at the Consumer Electronics Show in Las Vegas. The sales growth from the year-earlier period is based on data from U.S. retail outlets monitored by research firm NPD Group Inc.

"We're talking about something that's almost as portable as a phone and that's as powerful as a PC running Windows 7," Ballmer, 53, said of the Hewlett-Packard tablet computer and two others he had on stage.

Microsoft has renewed its focus on tablet computers at a time when Apple Inc. (AAPL) may be poised to unveil its own model this month. Microsoft, the world's largest software maker, wants to highlight the touch-screen features of Windows 7, which went on sale in October. Palo Alto, California-based Hewlett-Packard and other computer makers have sold such devices with Microsoft software since 2002, with little success.

"H-P has been a longtime supporter of the category, so in some sense this is just another iteration," said Roger Kay, an analyst with Endpoint Technologies Associates in Wayland, Massachusetts. "If Apple totally blows the category away, Microsoft and H-P won't be happy having come out a month in advance with something that's just OK." Apple plans to introduce its tablet computer this month, a person familiar with the matter said this week.

Source:-http://www.businessweek.com