Definitely there is a demand for alternate form factor Slates/tablets, a sweet spot between Mobile and Laptops. Samsung with Galaxy Tab is eating directly into Apple iPad sales pie. Microsoft needs to position a strong alternative and it needs to happen soon (as in next 3-6 months).

Galaxy Tab global sales top 600,000 units

Samsung Electronics Co. said Sunday it has sold more than 600,000 units of its tablet PC globally just a month after its launch. The 7-inch Galaxy Tab was first released in Italy in mid-October, challenging the global dominance of Apple Inc’s 9.7-inch iPad. The Galaxy Tab is now available in more than 30 countries in North America, Europe and Asia. In Korea, about 30,000 units have been sold since its Nov. 14 launch through SK Telecom.

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Apple has sold about 7.5 million iPad units globally since its April launch, brushing off skepticism that tablet PCs would not fill the gap between smartphones and computers.