Toshiba Cancels Windows RT Devices on Delay in Getting Parts
Toshiba Corp. (6502) canceled previously announced plans to sell computer and tablet devices based on Microsoft Corp. (MSFT)'s Windows RT operating system because of a delay in getting components.
Context & Ripple Effects
In July, Toshiba was among the manufacturers expected to bring Windows RT tablets to market during 2012, alongside Asus, Lenovo and Samsung. That planned OEM launch group was central to Microsoft’s effort to put the new operating system across multiple hardware brands.
Toshiba’s withdrawal is an execution setback rather than a change in its stated product category: delayed component deliveries have removed one planned computer-and-tablet supplier before the platform’s rollout.
First-order effects
- Toshiba will not ship its planned Windows RT computers and tablets, leaving Microsoft with one fewer OEM device line in the 2012 launch cycle.
- The component delay shifts Toshiba’s immediate Windows RT effort from product launch to resolving supply availability.
Second-order effects
- Asus, Lenovo and Samsung face greater pressure to carry the visible OEM portion of the Windows RT rollout after Toshiba exits the announced group.
- Component suppliers able to meet Windows RT device schedules become more consequential to OEM launch timing, not merely to device specifications.
Third-order effects
- The episode points to a platform-launch constraint: Microsoft’s operating-system reach depends on OEMs coordinating hardware supply chains as well as adopting the software.
- If other OEM plans encounter similar bottlenecks, Windows RT’s early market presence will be determined by which manufacturers can execute complete device programs on schedule.
The trend: Windows RT is entering the market through a multi-OEM model in which hardware-component availability can determine the platform’s initial breadth.