In addition, an Austin, Texas-based start-up called Motion Computing, led by veterans of Dell and Compaq, says it will be selling tablet PCs by year's end.

Apple's continuing expansion into digital devices, combined with market pressures, could lead the company to consider a foray into tablet PCs. However, analysts doubt that such an initiative would be in Apple's best interests just now.

Where Does It Fit?

While a few Windows nuances have made it into the Mac OS interface, Apple has traditionally borrowed very little from Microsoft.

And it seems that in terms of the possibility of an Apple tablet debut, that tradition is not likely to change.

"I am skeptical about the potential demand for tablet PCs," Morningstar.com analyst Joseph Beaulieu told NewsFactor. "In terms of functionality, tablet PCs would supposedly fit somewhere between a PDA, like those made by Palm or Handspring, and a notebook PC."

"But as PDAs get more powerful, and as laptops get lighter, I'm afraid that the addressable market for tablet PCs will shrink," said Beaulieu.

Calling the tablet PC an "evolution of the laptop," Microsoft CEO Bill Gates spent a large portion of his 2001 Comdex keynote appearance discussing the potential market for the devices, which can be docked to function as a desktop, attached to a portable keyboard to function as a traditional laptop, or operate through handwriting recognition.

Clues in the Inkwell

Apple sparked speculation by announcing that it would include handwriting recognition technology in the next version of Mac OS X, code-named Jaguar and due out late this summer.

Dubbed Inkwell, the new feature targets graphics professionals, who, the company says, "will appreciate the ability to input text via stylus instead of switching to the keyboard." But Mac fans are cautiously hoping for something more.

"There have long been rumors about a forthcoming Apple PDA, and I think that at this time, that would make a lot more sense for the company," said Beaulieu.

According to Beaulieu, Apple did consider a tablet-based device in the early 1980s but scrapped the plans due to a lack of advanced technology, including low-cost LCD screens.

Bad Egg for Apple

With Apple placing most of its eggs in the education and creative baskets, and branching into enterprise of late, analysts worry that a move into tablet PCs could spread the company's resources too thin. (continued...)

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