The Tablet PC is often referred to as the evolution of the laptop. Microsoft describes it as "the most mobile and versitile computer ever". The device is expected to reach its full potential in the first quarter of 2003. A Tablet PC is essentially a PC with a touch-screen and no keyboard, though one can be plugged in if a user prefers. Input is entered using a stylus, and the device uses handwriting recognition technology similar to the Pocket PC's Transcriber tool. The devices run Windows XP Professional as their operating system. Tablet PCs feature low-power Intel processors with long battery life. The devices are generally lightweight and some of them come with wireless capability. Tablet PCs differ from Palms and Internet appliances in that users can run full Windows applications using a pen. In essence, users create documents using "digital ink." Some people refer to the Tablet PC as a "Super Personal Digital Assistant."

Although still in development, several companies are adopting Tablet PCs, including: Microsoft, ViewSonic, Compaq, IBM, and Sony, among others. The price is expected to be initially large due to competition in the laptop market and the PDA market simotaneously.