Centrino, "Office 11' Could Help Ink Sales For New Tablet PCs; Pen-Based Devices On Roll; Intel, Microsoft offerings will result in more features for sector led by HP, Acer.(INTERNET & TECHNOLOGY)

Byline: PATRICK SEITZ

Tablet PC sales, off to a fast start, could get a nice boost at midyear from two technology advances. Industry officials expect Intel Corp.'s new Centrino mobile technology and Microsoft Corp.'s Office 2003 release to help sales of the new type of portable personal computer. Intel's Centrino technology, led by its Pentium M chip, should improve the performance of Tablet PCs and extend battery life. Microsoft's Office 2003, formerly code-named Office 11, provides more integration of digital ink, a Tablet PC feature, into such Office applications as Word and Excel. Plus, Office 2003 includes OneNote, a new note-taking application that can store and organize such things as handwritten notes and Web clippings done with a Tablet PC stylus.

Tablet PCs, which debuted in November, sold 72,000 units worldwide by year-end, more than expected. Computer makers reported shortages in its first six weeks of availability.

Hewlett-Packard Co. and Toshiba Corp. have said they're increasing production of the devices.

Market researcher International Data Corp. expects makers will sell a half-million Tablet PCs this year.

"We're in the very early stages of a hockey-stick ramp-up," said IDC analyst Alan Promisel.

He doesn't expect the sales chart to curve up like that until 2004-05.