Toshiba Corp. (TOSYY, 6502.TO) scrapped its immediate plans to
release devices based on a new version of Microsoft Corp.'s (MSFT)
Windows operating system, becoming the latest computer maker to
show some hesitation toward the technology.
The Japanese electronics maker said in a statement that it's not
introducing tablets based on Windows RT due to delayed components
"that would make a timely launch impossible." Instead, Toshiba will
focus on bringing Windows 8 devices, which run on chips from Intel
Corp. (INTC) and Advanced Micro Devices Inc. (AMD), to market.
"We will continue to look into the possibility of Windows RT
products in the future while monitoring market conditions," Toshiba
spokesman Eric Paulsen said.
The company had been working with chip maker Texas Instruments
Inc. (TXN) on such devices. TI wasn't immediately available to
comment.
The move follows similar steps by Hewlett-Packard Co. (HPQ) in
June and deals another blow to development of the new Windows RT
operating system that runs on chips based on ARM Holdings PLC
technology (ARMH, ARM.LN) technology. It also leaves partner TI in
a difficult position and raises some questions about TI's foothold
in the mobile chip market.
Windows RT, to be released in October, is the first version of
Windows that will work with ARM-based chips, not just those from
traditional partners Intel and AMD. The version of the operating
system that works with chips from Intel and AMD is called Windows
8. To create a similar experience across its Windows RT devices,
Microsoft has played a bigger role than normal in the device
development process.
Some PC makers have privately complained about the lack of
software and other aspects of adopting Windows RT, including the
question of consumer demand for the product. Adding to the
challenges for companies considering Windows RT, Microsoft in June
unveiled its own branded tablet, dubbed Surface, based on the
operating system. The move is believed to have surprised and
angered computer makers, which now face the prospect of competing
with their software partner.
A couple months before Toshiba's announcement, PC giant H-P said
it had shelved its plans for a Windows RT device. The company said
it instead was initially focusing on Intel-powered tablets for
business users.
As part of its new Windows strategy, Microsoft has limited the
number of companies who could work with chip makers for an initial
release of Windows RT tablets. Nvidia Corp. (NVDA) has been working
with Asustek Computer Inc. (ASUUY, 2357.TW) and Lenovo Group Ltd.
(LNVGY, 0992.HK), according to people familiar with the matter,
while Qualcomm Inc. (QCOM) is paired with Dell Inc. (DELL) and
Samsung Electronics Co. (SSNHY, 005930.SE), people familiar with
the matter say.
TI's only initial partner was Toshiba, which earlier this year
unveiled its plans for a tablet using TI chips. Questions about the
device emerged Monday after Microsoft published a blog post about
Windows RT development that left Toshiba off the list of tablet
partners.
"All of these Windows RT PCs will have consistent fast and fluid
touch interactions, long battery life, connected standby and are
beautiful, thin, and light designs," Mike Anguilo, vice president
of Microsoft's ecosystem and planning team, said in the blog post.
"All of these are designed to make the most of the capabilities of
Windows RT."
TI said as recently as two weeks ago that development with
Toshiba was going well. Kathy Brown, the TI general manager
overseeing Windows development, said in an interview with Dow Jones
at the beginning of August that TI was "making great progress" with
Windows and was "very excited with what Toshiba is bringing to
market."
However, she did caution that development for Windows RT hasn't
been simple.
"No one is having an easy time with this," Ms. Brown said in the
interview. "Microsoft said the same thing with its own progress. I
would not say it's hard, but it's difficult to put Windows on
system-on-a-chip. I knew it would be difficult, and it has
been."
The semiconductor industry has been shifting away from separate
chips and toward multifunction products that the industry calls
system on a chip, or SoCs. Such products save space and power in
mobile devices and other hardware. Ms. Brown said SoCs present some
engineering challenges as they require all parts of the operating
system to seamlessly work together in one chip.
TI processors power some high-profile devices on the
market--including the Amazon.com Inc. (AMZN) Kindle Fire--but
rivals such as Nvidia have shown more traction in tablets of late.
Nvidia's processors are used in both Microsoft and Google Inc.'s
(GOOG) self-branded tablets.
Qualcomm, meanwhile, dominates the smartphone market but has had
some setbacks with Windows RT. H-P was working with Qualcomm on its
Windows RT device before ultimately setting aside its immediate
plans for the new technology.
As for TI, it has been lessening its exposure to the mobile
business, though the company has repeatedly reiterated its
commitment to the market. It is in the process of exiting its
wireless chip business, but it also has been pushing the "Internet
of Things" for its operations that provide chips that act as the
brains of electronics.
Write to Shara Tibken at shara.tibken@dowjones.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires