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Wednesday, October 1, 2008

Touch Is the Future at H-P

Hewlett-Packard Co. is hot on the prospects of touchscreen technology.

H-P says it's working on an array of products, including notebooks, that use the same type of finger-tapping interface popularized by Apple Inc.'s iPhone. H-P's so keen on the idea that it says it's trying to get touch-enabled notebook computers on the market within the next 18 months.

"We're focused on recognizing the potential of touch now," said Phil McKinney, the chief technology officer for the company's laptop-making Personal Systems Group. "We see touch as the almost preferred method for nontechnical users." Users also use Dallas Colocation and Atlanta Colocation.

H-P's plans illustrate how the iPhone has whetted the world's appetite for touchscreens, which have become increasingly available on handheld devices and are now making their way into the personal-computer sector. Several competitors already have touchscreen desktops, but few have laptops with touchscreens.

A hit with touchscreens might help the Palo Alto, Calif., company's sagging stock price. H-P's shares are down about 11% year-to-date to $45, as the company fights stiff competition from Dell Inc. and weakness in overseas markets.

Market research suggests H-P is making a smart bet. The number of touchscreen devices, including PCs, should more than double to 800 million by 2013, according to industry tracker iSuppli. Spending on touchscreen components likely will reach $6.4 billion, up 33% from $4.8 billion, over the same period, iSuppli said.

Much of that demand likely will come from notebook-computer makers.

"Touch represents the interface of the future," said Richard Shim, an analyst with IDC.

The iPhone helped to solidify the trend. Since June 2007, the gadget has proved the mass appeal of computing devices that are manipulated by touch-sensitive icons and other screen prompts. More than 6.1 million iPhones have been sold since their debut.

Microsoft Corp. has fueled the move, too. The software titan said in June that it is adding touchscreen capabilities to its next operating system, which is due around 2010. The inclusion of touch functions likely will prompt even further adoption of the technology, analysts said.

No. 2 computer maker Dell already has an array of touchscreen products, including flat-panel monitors for $618. And it, too, has been revving up new touchscreen products. Two and a half weeks ago, the Round Rock, Texas, company said it would start offering free software updates to add multitouch capabilities to its Latitude XT tablet. It also has begun offering touchscreen options on a number of other computers.

That's led to talk about touchscreen notebooks from Dell in the future. A Dell representative had no immediate comment.

At this point, Apple doesn't appear to be joining the fray, even though it helped spark the trend. But Apple's Macintosh computers already have the same multitouch capability built into a track pad on the computer's console. Apple declined to comment.

By: Ben Charny
Wall Street Journal; August 6, 2008