Microsoft previews 'slate PCs' to counter Apple tablet bandwagon

Picking up what he described as a 'sort of a prototype of a coming HP slate PC, that'll be here this year,' Ballmer was vague on details about what the device will actually be able to do, other than function as a souped-up e-reader dressed as an oversized smartphone.

'We're talking about something which is almost as portable as a phone, and as powerful as a PC running Windows 7. It's a beautiful little product,' said Ballmer, as he used it to run Amazon's Kindle e-reader app.

Two other prototypes, one from French consumer electronics outfit Archos, and the other from Taiwanese OEM, Pegatron, were also unveiled.

None of the devices will cause Apple to lose much sleep if its own tablet / slate computer lives up to even part of the media generated hype.

And even Apple's slate computer, which is expected to be launched on 27 January, will have to overcome the lack of interest which has greeted the tablet form factor in the past.

To many industry analysts, the tablet form is caught between the smartphone, which is more portable, and the laptop, which is more useful.

Others disagree.

"Apple could do for the tablet market what it did for smartphones with the iPhone," said IDC analyst David Daoud.