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Microsoft begins to sell tablet PCs as UK phone deal dies

Microsoft Corp began selling a portable computer to try to increase sales beyond software for desktop machines, on the same day a UK mobile-phone partner abandoned a Microsoft program and adopted a rival technology.

The world's biggest software maker and several computer makers introduced the Tablet PC, which lets users write on the screen, after investing US$400 million on the project. Demand will be slow this year and next, the company and analysts said.

Redmond, Washington-based Microsoft is trying to increase sales by marketing versions of its Windows and Office software for devices other than personal computers as PC shipments slow.

Closely held Sendo Plc, an early adopter of Microsoft's software for mobile phones, halted work on a Microsoft-based system and switched to one made by Nokia Oyj.

"This may mark an end for Microsoft's attack to the mobile-phone market before it has even properly started," said Michael Schroeder, an analyst at Helsinki-based Opstock Securities.

The Tablet PC, being produced by companies including Hewlett-Packard Co, Fujitsu Ltd, Acer Inc and Toshiba Corp, lets users write on the computer's screen to take notes or add comments and drawings into files. Microsoft on Thursday announced two more computer makers will build the devices -- Samsung Electronics Co and Matsushita Electric Industrial Co's Panasonic unit.
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