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Tablet computer sales losing steam, survey shows...

A technology representative demonstrates the Microsoft Surface Pro tablet computer in Washington, DC last year. PHOTO/AFP

WASHINGTON - Global sales of tablet computers are likely to slow this year, hurt in part by saturation and adoption of large-screen smartphones or 'phablets,' a market tracker said Thursday. The research firm IDC said its updated forecast sees tablet sales up 12.1 percent this year, after a 51.8 percent expansion in 2013. IDC said sales are likely to total around 245.4 million units this year. 'Two major issues are causing the tablet market to slow down. First, consumers are keeping their tablets, especially higher-cost models from major vendors, far longer than originally anticipated,' said IDC analyst Tom Mainelli. 'And when they do buy a new one, they are often passing their existing tablet off to another member of the family.' The second factor is the rise of phablets -- smartphones with 5.5-inch and larger screens, the analyst said.

The emergence of phablets is 'causing many people to second-guess tablet purchases as the larger screens on these phones are often adequate for tasks once reserved for tablets.' In the past year, IDC said, the phablet share of smartphone shipments has more than doubled, from 4.3 percent in the first quarter of 2013 to 10.5 percent in early 2014. IDC said consumers are now looking at tablets and related devices with larger screens like Microsoft's 12-inch Surface Pro 3. 'The shift back toward larger screens will mark a welcome sea change for most vendors as the average selling price for these devices will remain roughly 50 percent higher than the average sub-8-inch device,' said IDC's Jitesh Ubrani. 'Microsoft is also expected to benefit from this shift, as the share for Windows-based devices is expected to double between now and 2018.' A previous IDC report said sales of tablets including newly introduced convertible PCs totaled 50.4 million units in the first quarter of 2014. That was just 3.9 percent higher than the same period a year earlier, and down 35.7 percent from the busy holiday season that included the fourth quarter of 2013.

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Toshiba's 2

Toshiba's 2-in-1 Detachable Tablet Computers Expand Company's Satellite Devices

By Justin Stock j.stock@hngn.com | May 27, 2014 11:23 AM EDT

Toshiba's next generation 2-in-1 detachable PCs will expand the computer maker's line of Satellite Click devices.

According to a press release, the company unveiled the 13.3-inch interchangeable products with Windows 8.1, Tuesday.

The devices allow home users, students and mobile workers to smoothly switch over to a tablet from a full-featured laptop.

Toshiba's senior director of product marketing for the digital products division of its America Information System's, Inc. entity said the devices are great pieces of equipment for affordable prices.

'We've developed two amazing detachables - one that delivers solid, everyday performance at a great price and another that features a premium performance configuration that the category has been missing. Yet both give consumers the productivity benefits of a laptop and the convenience and battery life of a tablet in one device,' Philip Osako said in a statement.

Toshiba's $586.99 Satellite Click 2 tablet computer has a quad-core Intel Pentium processor 2, 500 gigabyte hard drive, and ultra-fast 802.11 ac Wi-Fi capabilities.

A quick-release latching mechanism allows users to attach and detach screens to the device's keyboard. A skullcandy and DTS audio component gives users clear sound.

The $1,028.99 Satellite Click 2 Pro has a full high definition display, and dual cameras. Consumers can also attach and detach the device's screen via a push-and-pull mechanism.

The devices come equipped with Micro HDMI and Micro USB 2.0 ports, as well as wireless display support. Intel WiDi6 technology lets users share content between larger-sized television screens. A microSD slot also runs on a fourth generation Intel Core Processor, and the diode backlit keyboard allows users to work on the device in dim environments.

The Click 2 Pro's Harman Kardon sound system bumps great-sounding audio. Consumers can also easily video chat with a front high definition webcam, according to the press release.

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China retaliates, nixes Windows 8 on government PCs

Computerworld - China has banned the use of Windows 8 on government computers, a move officials there claimed was a reaction to the end of Windows XP's support.

According to the Xinhua News Agency, an official press arm of the People's Republic, Windows 8 has been barred from government, but not private, PCs.

'It's a good sound bite for the Chinese government, it goes well as a response to the DOJ action, and if sales are low -- even if they eventually use it -- they'll have a statement to back it up,' said Michael Silver, an analyst with Gartner, in an email reply to questions.

Silver referred to yesterday's charges by the U.S. Department of Justice leveled against five Chinese hackers with links to the People's Liberation Army (PLA), China's military. The DOJ accused the five of breaking into numerous U.S. companies' networks and stealing trade secrets and intellectual property.

Xinhua's Tuesday report said that the Central Government Procurement Center mandated that all 'desktops, laptops and tablet PCs purchased by central state organizations must be installed with OS other than Windows 8.'

The procurement center had posted a notice May 16 with revised requirements for government tenders, including one that barred Windows 8-powered systems, supposedly for energy-saving reasons, from any bids.

Xinhua said nothing of Windows 7, the most popular of Microsoft's operating systems. But it had plenty to say about the 13-year-old Windows XP, which was retired from public support last month.

According to Xinhua, the ban of Windows 8 was designed to avoid a repeat of XP's widespread use and its exit from support.

'The Chinese government obviously cannot ignore the risks of running OS without guaranteed technical support,' Xinhua said. 'It has moved to avoid the awkwardness of being confronted with a similar situation again in future if it continues to purchase computers with foreign OS.'

Instead, China will accelerate the design of an in-country operating system based on Linux.

China has worked on a its own OS before: In 2000, Red Flag Linux, which was funded in part by the government's Ministry of Information, was released. Later that year, Red Flag was mandated as the replacement for Windows 2000 on all government PCs. Tensions between China's government and Microsoft were at the root of that order.

Red Flag never took off, and the company backing it shuttered earlier this year.

'[Creating their own OS] would really make sense, in that they can fully control it, including lifecycle and patching,' said Silver.

While Windows is widely used in China -- XP is particularly popular, with a 70% share of the desktop OS market, according to Xinhua -- Microsoft has struggled for years to convince the government to crack down on piracy.

Earlier this year, Microsoft denied reports that it would make an exception for China-based Windows XP PCs, and continue to patch those machines after the official April 8 end-of-support.

According to Irish analytics company StatCounter, Windows 8 PCs accounted for 3.4% of all desktop browsing in China, while Windows XP and Windows 7 had shares of 44.1% and 47.2%, respectively.

Gregg Keizer covers Microsoft, security issues, Apple, Web browsers and general technology breaking news for Computerworld. Follow Gregg on Twitter at @gkeizer, on Google+ or subscribe to Gregg's RSS feed . His email address is gkeizer@computerworld.com.

See more by Gregg Keizer on Computerworld.com.

Read more about Operating Systems in Computerworld's Operating Systems Topic Center.

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Lenovo sales: 55 million PCs, 50 million smartphones

Summary: The world's biggest PC maker has shown there may be life in the desktop market yet.

Lenovo's Thinkpad 10. Image: Lenovo

The world's largest PC maker Lenovo said it sold 55 million PCs, 50 million smartphones and 9.2 million tablets in the year to the end of March.

On Tuesday, the company reported full-year revenues of $38.7bn, up 14 percent, and net profit of $817m, up 29 percent.

Lenovo said it now accounts for 17.7 percent of the global PC market after adding 2.1 points of market share over the year, representing five percent year-on-year growth (compared to an overall industry decline of eight percent during the same period).

The company also said that for the last four quarters it has sold more tablets and smartphones than PCs. It is currently in the process of acquiring Motorola Mobility from Google in order to further its efforts in the smartphone market as the traditional PC market continues to decline.

By geography, China accounted for 33 percent of Lenovo's total worldwide sales, but in the fourth quarter, Lenovo's total EMEA revenue surpassed its China PC revenue - the first time that's happened. Lenovo's US PC business now accounts for 21 percent of its total worldwide sales; in the US, during the fourth quarter, Lenovo overtook Apple in terms of PC shipments to become the third largest PC maker in the country with a 10.8 percent market share.

Looking at the numbers by product line, Lenovo's worldwide laptop PC business increased in the fourth fiscal quarter by 16 percent to $4.8bn, accounting for 51 percent of the company's overall sales. Despite the general market declining, its desktop PC sales for the same period increased 14 percent to $2.7bn, or 29 percent of the company's overall sales worldwide. The company's sales of smartphones and digital home products jumped to $1.3bn, or 13 percent of the company's overall sales, and Lenovo said its worldwide smartphone shipments grew 59.4 percent in the fourth quarter.

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Tablet Computer Sales Increasing Due to New Market Demand

Current trends show that tablet computer sales have been increasing as a result of new market demand. The reason for this trend is the fact that tablet computers are being marketed by software companies such as Microsoft and Apple as replacements for laptop computers, most likely due to their greater portability and accessible interface. All of this is in response to maintaining relevancy and meeting the ever fluctuating demand of consumers.

Besides more aggressive marketing campaigns, tablets have found their use increasing in the business and private sector, reaching new markets and demographics that require reliable devices that are easy to use. The three markets that are responsible for the increased demand in tablet computers are children, healthcare workers/industry, and surprisingly, the elderly.

In the case of children, educational services are slowly becoming more accessible via tablet computers. In Japan, over 900,000 customers in the elementary, junior high, and high school grade levels have enrolled in tablet-based educational programs meant to replace in-class 'paper courses.' Experiments conducted in Ethiopia by Tufts' Center for Reading and MIT show that widespread tablet use has great potential in the fight against illiteracy.

Tablet computer sales have been increasing due to new market demands, one of which is the healthcare industry, and emergency medical services in particular. During the events of Hurricane Sandy, paramedics found that tablets such as the iPad were invaluable in their efforts to coordinate rescue operations. Tablets were used to track and store data and information, and applications being developed have assisted EMTs in communication with hospitals and assisted in medical diagnoses. The potential for further development is vast and likely.

The elderly have also played a significant part in the increased demand for tablets. Tablet use among senior citizens had increased by twelve percent between 2012 and 2013. This increase in tablet use has also been responsible for a similar surge in internet use among seniors. However, seniors are still less likely to use their tablets in a similar fashion to that of their younger counterparts. Seniors have demonstrated that their primary use for tablets is for web browsing and email. They typically spend the least amount of time browsing on the internet as opposed to the 16-24 demographic.

Apple's iPad debuted back in 2010, and it naturally spurred its competitors into developing their own offshoots in an attempt to capitalize on the demand this new product would create. This competition has led to new uses for tablet computers as well as the need for those same companies to meet the demands of its consumers, primarily the new markets that have been showing an increased demand for tablets.

The fact that tablet computer sales are increasing because of these new market demands shows just how innovative this new aspect of technology is proving itself to be. If current trends hold, it is likely that tablets and other similar devices will usher in a new era of technological advancement, shaping the way our culture evolves. Just as the development and widespread use of the printing press led to the sharing and communication of new ideas and philosophies, the use of tablets and their applications may just become one of the most significant moments in technological history.

Opinion by David Jones

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Best tablets to buy in 2014

Posted on 21 May 2014 at 14:29, by Tom Morgan

Find out what are the best tablet PCs to buy in 2014 and read our in-depth tablet reviews, as rated by our team of expert reviewers. Not sure if a particular tablet or mobile operating system will be right for you? We've got something for everyone here, from 7in budget bargains to the latest flagship models from all the major brands. Our always up-to-date list will help you make the right choice.

Sony Xperia Z2 Tablet

The 10in Android tablet that has it all Our Expert Opinion With the Z2 Tablet, Sony has taken everything that was great about the Tablet Z and made it even better.

It's thinner and lighter than its predecessor, and is even more svelte than the iPad Air. The screen is beautiful, the tablet is lightning-fast thanks to its up-to-the-minute processor and it's just a lovely object to hold and to use.

Sony may have stuck with the tried-and-tested 1,920x1,080 resolution rather than the stratospheric numbers of pixels trumpeted by Apple and Samsung, but on a screen this size with such beautiful image quality, we're not convinced it matters.

The Z2 Tablet is the fastest Android tablet we've seen with the best screen. If you want a 10in Android slate, this is the best there is.

Read our full Sony Xperia Z2 Tablet review

SPECS CPU 2.3GHz Qualcomm Snapdragon 801 RAM 3GB INTERNAL STORAGE 16GB DISPLAY 10.1in widescreen LCD (1,920x1,200) OPERATING SYSTEM Android 4.4 DIMENSIONS 172x266x6.4mm PART CODE SGP511

BUY IT FROM £399 for the 16GB model from John Lewis

Google Nexus 7 (2013)

Still the best all-round Android tablet Our Expert Opinion Google's original Nexus 7 blew us away when it arrived last year, combining great performance with an incredible price. The price went up for the 2013 refresh, and even though it still costs £199 today, it's easily one of the best 7in Android tablets around for the money. The Full HD display, Snapdragon processor and an unskinned vanilla version of Android, wrapped up in a beautifully designed and well-built chassis combine into a package that's still very difficult to beat

Read our full Nexus 7 (2013) review

SPECS CPU 1.5GHz Qualcomm Snapdragon S4 Pro RAM 2GB INTERNAL STORAGE 16GB DISPLAY 7in 1,920x1,200 LCD OPERATING SYSTEM Android 4.3 DIMENSIONS 200x114x9mm, 290g PART CODE nexus_7_16gb_2013

BUY IT FROM £199 for the 16GB model from the Google Play Store

Apple iPad Air

Apple's best iPad yet is thinner and lighter, yet more powerful than the previous modelOur Expert Opinion The original and, some would say the best, Apple's iPad is undeniably the most popular tablet around. The fifth generation model is better than ever, thanks to a new slimline design that doesn't compromise on performance or image quality in order shrink down in size. The incredibly high resolution 9.7in, 2048x1536 display is paired with a lightning-fast 64-bit A7 processor and quad-core graphics, which make it significantly faster than last year's models in games. Storage capacities range from 16GB to a whopping 128GB, so if you need the space you won't have to worry about running out of room, and you have the choice of Wi-Fi and 4G mobile broadband models too. Apple's App store undeniably has the biggest selection too, so you should't run out of things to do with your new tablet.

Read our full Apple iPad Air review

BUY IT FROM £399 from the Apple Store

Advent Vega Tegra Note

The best budget Android tablet is incredibly powerful for the priceOur Expert Opinion Until Nvidia released its Tegra 4 processor, Google's Nexus 7 had the value crown in terms of 7in Android tablets. That's no longer the case, as you can pick up an Advent Vega Tegra Note from Currys or PC world for just £140 - £60 less than a new Nexus 7. It's faster, includes a stylus for drawing or note-taking, and has a microSD card slot for adding extra capacity, should you want to take your entire music collection with you on the move. If you're on a tight budget, this is the Android tablet to go for.

Read our full Advent Vega Tegra Note review

BUY IT FROM £139.99 from PC World

Apple iPad Mini with Retina Display

The iPad for frequent travellers or commutersOur Expert Opinion Smaller tablets like Google's Nexus 7 made a significant dent in Apple's iPad sales, so it was understandable when the company launched a miniature tablet of its own, but the iPad Mini lacked the eye-searing display of its bigger brother. Apple has fixed that for the sequel, adding a Retina display to the tiny 7.9in tablet which brings it in line with the iPad Air. Despite its size, it's quite pricey: prices start from £319 for the basic 16GB Wi-Fi model and climb all the way up to £659 for the 128GB 4G version, but you get everything you'll find in the iPad Air in an even more compact chassis. The 7.9in display is almost unbeatable for reading and web browsing, and iOS has the largest app library for any mobile device, so there's a huge selection to choose from.

Read our full Apple iPad Mini with Retina display review

BUY IT FROM £319 directly from the Apple Store

Amazon Kindle Fire HDX 7

A huge content library makes the HDX hard to beat for film fansOur Expert Opinion Amazon's third generation Kindle Fire tablet is also the best; the Kindle Fire HDX improves over the originals with a much higher resolution display, faster internals and a brand new version of the company's own FireOS operating system (itself a heavily modified version of Android). Amazon's custom UI is such a major departure from Google's default interface that it won't be for everyone, but with services like Prime Instant Video heavily integrated it could be the ideal tablet for movie addicts or anyone that absolutely has to finish that latest TV box set. The HDX is also great for buying eBooks from the Kindle store or downloading music.

Read our full Amazon Kindle Fire HDX 7 review

BUY IT FROM £199 directly from Amazon

Nokia Lumia 2520

The best Windows RT tablet comes from Nokia, not MicrosoftOur Expert Opinion Microsoft hasn't had a whole lot of support for Windows RT, but long-time Windows Phone supporter Nokia has given us the best RT tablet to date with the Lumia 2520. It's powerful, has a beautiful screen and has expandable storage, plus it looks stunning in a range of colours - making it much more interesting to look at than Microsoft's own bland Surface RT. If you need a tablet for business and simply can't give up Microsoft Office, Rt could be your best bet and the 2520 is the pick of the bunch.

Read our full Nokia Lumia 2520 review

BUY IT FROM £399.99 from John Lewis

LG G Pad 8.3

Until the mythical Nexus 8 appears, LG's G Pad is the best 8in Android tabletOur Expert Opinion LG's custom Android interface may take some getting used to, and the Qualcomm Snapdragon 600 processor isn't as fast as the Snapdragon 800 CPU found in Amazon's Kindle Fire HDX range, but the G Pad 8.3 is still undeniably the best 8in Android tablet around today. It also has the benefit of microSD expansion, one-upping the Nexus 7's fixed storage capacity, plus it costs slightly less too. If you want the biggest screen but don't want to make the jump to a 10in tablet, this is your best bet.

Read our full LG G Pad 8.3 review

For more details about purchasing this feature and/or images for editorial usage, please contact Jasmine Samra on pictures@dennis.co.uk

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Google to unveil Tango tablet computer with 3D advance vision capabilities

Google is getting set to unveil a new cutting-edge 7-inch tablet computer with 3D-sensing capabilities similar to the Project Tango smartphone revealed in February.

In February, Google's Advanced Technology and Projects (ATAP) skunkworks revealed Project Tango, an Android-based 5-inch phone that comes with advanced 3D sensors that can build a visual map of the environment around it using 3D scanning.

At the heart of the breakthrough technology was a new chip architecture developed by Irish company Movidius that enables a range of devices to intelligently understand and contextualise their surroundings.

According to The Wall Street Journal, Google plans to produce 4,000 Project Tango tablet computers next month with a 7-inch screen, two back cameras, infrared depth sensors and software that can precisely capture 3D images of objects.

Google has already developed a prototype 5-inch Android phone containing customised hardware and software designed to track the full three-dimensional motion of the device and create a map of the environment.

The sensors on the device can make more than 250,000 3D measurements per second to create a single 3D model of the space surrounding the smartphone.

The internet giant has been collaborating with universities, research labs and industrial partners, such as Movidius, in nine countries around the world.

'Project Tango strives to give mobile devices a human-like understanding of space and motion through advanced sensor fusion and computer vision, enabling new and enhanced types of user experiences - including 3D scanning, indoor navigation and immersive gaming,' Johnny Lee, technical program lead, Advanced Technology and Projects at Google, said in February when Project Tango was revealed.

'Movidius has provided a key component towards enabling access to these features in a small mobile platform with a chip designed with visual sensing and battery life in mind. We look forward to continuing our collaboration with Movidius as these new applications evolve and new device designs come to market.'

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Google to unveil Tango tablet computer with 3D advance vision capabilities

Google is getting set to unveil a new cutting-edge 7-inch tablet computer with 3D-sensing capabilities similar to the Project Tango smartphone revealed in February.

In February, Google's Advanced Technology and Projects (ATAP) skunkworks revealed Project Tango, an Android-based 5-inch phone that comes with advanced 3D sensors that can build a visual map of the environment around it using 3D scanning.

At the heart of the breakthrough technology was a new chip architecture developed by Irish company Movidius that enables a range of devices to intelligently understand and contextualise their surroundings.

According to The Wall Street Journal, Google plans to produce 4,000 Project Tango tablet computers next month with a 7-inch screen, two back cameras, infrared depth sensors and software that can precisely capture 3D images of objects.

Google has already developed a prototype 5-inch Android phone containing customised hardware and software designed to track the full three-dimensional motion of the device and create a map of the environment.

The sensors on the device can make more than 250,000 3D measurements per second to create a single 3D model of the space surrounding the smartphone.

The internet giant has been collaborating with universities, research labs and industrial partners, such as Movidius, in nine countries around the world.

'Project Tango strives to give mobile devices a human-like understanding of space and motion through advanced sensor fusion and computer vision, enabling new and enhanced types of user experiences - including 3D scanning, indoor navigation and immersive gaming,' Johnny Lee, technical program lead, Advanced Technology and Projects at Google, said in February when Project Tango was revealed.

'Movidius has provided a key component towards enabling access to these features in a small mobile platform with a chip designed with visual sensing and battery life in mind. We look forward to continuing our collaboration with Movidius as these new applications evolve and new device designs come to market.'

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China Rejects Windows 8 For Government Computers

(Click image for larger view and slideshow.)

Chinese authorities have banned the use of Windows 8 on computers purchased for government use, according to an announcement posted May 16 on the website of China's Central Government Procurement Center.

The energy-efficiency mandate requires that all desktop, laptop, and tablet PCs bought by state agencies come with an operating system other than Windows 8.

The state news agency Xinhua characterizes the decision as 'a move to ensure computer security after the shutdown of Windows XP.'

Microsoft asserts that ongoing use of Windows XP presents a security risk. 'If you continue to use Windows XP now that support has ended, your computer will still work but it might become more vulnerable to security risks and viruses,' the company says on its website.

[Apple has zero share of the phablet market -- so far. Read Phablet Sales Surge: What Will Apple Do?]

A Microsoft spokesperson said in an email that it has been working with Chinese authorities to ensure that its products meet government requirements, and that it will continue to do so. 'We are confident that Windows 8 meets all of these requirements, and we've seen a large number of customers around the world, including governments, embrace Windows 8 as a modern, secure operating system.'

More than 12 years after launching Windows XP, Microsoft ended support for its outdated operating system on April 8. The company no longer provides technical assistance or automatic updates for its old operating system software, outside of special contractual arrangements. Microsoft says that, to remain protected from security threats, customers should upgrade to Microsoft Windows 8.1.

About half the Chinese desktop market relies on Windows XP, the research firm Canalys said in February. The Windows 8 ban compounds the problems Microsoft has had getting businesses to adopt its latest operating system. 'Windows 8 uptake remains weak and the PC refresh cycle shows no sign of returning,' Canalys said.

Since then, the PC refresh cycle has improved. According to Canalys, the discontinuation of XP in April helped sustain demand for PC shipments as more replacement PCs were purchased.

However, first-quarter demand for notebooks and desktops in China during the fell 13% and 6%, respectively, from the same period last year, Canalys said. With tablets accounting for 50% of the PC market in 2014 and Windows 8 disallowed on government tablets and PCs, Microsoft faces magnified challenges in China.

Stephen Kleynhans, a research vice president with Gartner, doubts China's decision will have much impact on Microsoft outside of China. 'The ban is only on government systems,' he said in a phone interview. 'But it is definitely something they have to address' to undo any negative perception among customers.

He said he found it odd that Chinese authorities chose to pick on the security and energy efficiency of Windows 8. 'From a software standpoint, those are both areas where Windows 8 excels over previous versions of Windows. They seem like odd reasons for banning the product.'

Kleynhans speculates that China's ban on Windows 8 on government computers might be a negotiating tactic to get Microsoft to extend support for Windows XP on a more affordable basis.

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But given the level of mistrust between the governments of China and the US, it's also likely that many Chinese officials would prefer to see a homegrown, Linux-based operating system gain traction and eventually supplant Windows.

Thomas Claburn has been writing about business and technology since 1996, for publications such as New Architect, PC Computing, InformationWeek, Salon, Wired, and Ziff Davis Smart Business. Before that, he worked in film and television, having earned a not particularly useful ... View Full Bio

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China Bans Windows 8 on Government Computers

Image: Kin Cheung/Associated Press

China is banning the government's use of Microsoft's Windows 8 operating system, according to a notice posted on its website.

The Central Government Procurement Center is prohibiting government computers from installing Windows 8 or buying new devices with the software, Chinese news site Xinhua reports. The government posted the message announcing the change in policy late last week. The consumer Windows 8 market in China will not be affected.

Although details regarding the ban are vague, the government said it will only be purchasing energy-efficient IT products from now on, from desktop computers and laptops to tablets But the move is also said to protect computer security after Microsoft curtailed its support for Windows XP, which was largely used across the country.

Market firm StatCounter states that Windows XP systems make up 44% of desktops in China, while Windows 8 is only installed on 3.4% of computers.

The news comes as China emphasized to Microsoft that it should drop the price of its Windows products. Although Windows usage in China has been low, the Chinese government was a big customer for Microsoft.

Microsoft was reportedly surprised by the news. 'We have been and will continue to provide Windows 7 to government customers,' the company said in an email, according to PCWorld. 'At the same time, we are working on the Window 8 evaluation with relevant government agencies.'

Meanwhile, the company is gearing up for its 'small' Surface event in New York City on Tuesday, when it will likely launch its first Mini tablet to compete against both Apple and Amazon's small-screen tablets.

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China Rejects Windows 8 For Government Computers

(Click image for larger view and slideshow.)

Chinese authorities have banned the use of Windows 8 on computers purchased for government use, according to an announcement posted May 16 on the website of China's Central Government Procurement Center.

The energy-efficiency mandate requires that all desktop, laptop, and tablet PCs bought by state agencies come with an operating system other than Windows 8.

The state news agency Xinhua characterizes the decision as 'a move to ensure computer security after the shutdown of Windows XP.'

Microsoft asserts that ongoing use of Windows XP presents a security risk. 'If you continue to use Windows XP now that support has ended, your computer will still work but it might become more vulnerable to security risks and viruses,' the company says on its website.

[Apple has zero share of the phablet market -- so far. Read Phablet Sales Surge: What Will Apple Do?]

A Microsoft spokesperson said in an email that it has been working with Chinese authorities to ensure that its products meet government requirements, and that it will continue to do so. 'We are confident that Windows 8 meets all of these requirements, and we've seen a large number of customers around the world, including governments, embrace Windows 8 as a modern, secure operating system.'

More than 12 years after launching Windows XP, Microsoft ended support for its outdated operating system on April 8. The company no longer provides technical assistance or automatic updates for its old operating system software, outside of special contractual arrangements. Microsoft says that, to remain protected from security threats, customers should upgrade to Microsoft Windows 8.1.

About half the Chinese desktop market relies on Windows XP, the research firm Canalys said in February. The Windows 8 ban compounds the problems Microsoft has had getting businesses to adopt its latest operating system. 'Windows 8 uptake remains weak and the PC refresh cycle shows no sign of returning,' Canalys said.

Since then, the PC refresh cycle has improved. According to Canalys, the discontinuation of XP in April helped sustain demand for PC shipments as more replacement PCs were purchased.

However, first-quarter demand for notebooks and desktops in China during the fell 13% and 6%, respectively, from the same period last year, Canalys said. With tablets accounting for 50% of the PC market in 2014 and Windows 8 disallowed on government tablets and PCs, Microsoft faces magnified challenges in China.

Stephen Kleynhans, a research vice president with Gartner, doubts China's decision will have much impact on Microsoft outside of China. 'The ban is only on government systems,' he said in a phone interview. 'But it is definitely something they have to address' to undo any negative perception among customers.

He said he found it odd that Chinese authorities chose to pick on the security and energy efficiency of Windows 8. 'From a software standpoint, those are both areas where Windows 8 excels over previous versions of Windows. They seem like odd reasons for banning the product.'

Kleynhans speculates that China's ban on Windows 8 on government computers might be a negotiating tactic to get Microsoft to extend support for Windows XP on a more affordable basis.

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But given the level of mistrust between the governments of China and the US, it's also likely that many Chinese officials would prefer to see a homegrown, Linux-based operating system gain traction and eventually supplant Windows.

Thomas Claburn has been writing about business and technology since 1996, for publications such as New Architect, PC Computing, InformationWeek, Salon, Wired, and Ziff Davis Smart Business. Before that, he worked in film and television, having earned a not particularly useful ... View Full Bio

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