Hundreds of French troops drive back Mali rebels

BAMAKO, Mali (AP) — The battle to retake Mali's north from the al-Qaida-linked groups controlling it began in earnest Saturday, after hundreds of French forces deployed to the country and began aerial bombardments to drive back the Islamic extremists.
At the same time, nations in West Africa authorized the immediate deployment of troops to Mali, fast-forwarding a military intervention that was not due to start until September.
The decision to begin the military operation was taken after the fighters, who seized the northern half of Mali nine months ago, decided earlier this week to push even further south to the town of Konna, coming within 50 kilometers (30 miles) of Mopti, the first town held by the government and a major base for the Malian military.
Many believe that if Mopti were to fall, the Islamists could potentially seize the rest of the country, dramatically raising the stakes. The potential outcome was "a terrorist state at the doorstep of France and Europe," French Defense Minister Jean-Yves Le Drian said Saturday.
France scrambled Mirage fighter jets from a base in neighboring Chad, as well as combat helicopters beginning the aerial assault on Friday. They have also sent in hundreds of troops to the front line, as well as to secure the capital. In just 24 hours, French forces succeeded in dispersing the Islamists from Konna, the town the fighters had seized in a bold advance earlier in the week, Le Drian said.
Malian military officials said they were now conducting sweeps, looking for snipers.
"A halting blow has been delivered, and heavy losses have been inflicted on our adversaries, but our mission is not complete," French President Francois Hollande said after a three-hour meeting with his defense chiefs in Paris. "I reiterate that it consists of preparing the deployment of an African intervention force to allow Mali to recover its territorial integrity."
However, in a sign of how hard the battle ahead may be, the extremists succeeded in shooting down a French helicopter, the defense minister confirmed. The pilot died of his wounds while he was being evacuated. The Islamists are using arms stolen from ex-Libyan leader Moammar Gadhafi's arsenal, as well as the weapons abandoned by Mali's military when they fled their posts in the face of the rebel advance.
They have outfitted SUVs with high-caliber machine guns, and have released videos displaying their collection of anti-aircraft weapons.
The Islamists have vowed to retaliate against French interests, and they claim to have sleeper cells in all of the capitals of the West African nations who are sending troops. Hollande announced that he had raised France's domestic terror threat level.
Online in jihadist forums, participants called for fighters to attack French interests in retaliation for the air raids. They discussed possible targets, including the French Embassy in neighboring Niger, one of the countries donating troops, according to a transcript provided by Washington-based SITE Intelligence.
The sudden military operation is a reversal of months of debate over whether or not Western powers should get involved in a military bid to oust the militants, who took advantage of a coup in Mali's capital in March to capture the north. As recently as December, U.N. Secretary-General Ban Ki-moon cautioned against a quick military operation. Diplomats said that September would be the earliest the operation could take place.
All of that went out the window this week when the fighters pushed south from the town of Douentza, which demarcated their line of control, located 900 kilometers (540 miles) from the capital. By Thursday, they had succeeded in advancing another 120 kilometers (72 miles) south, bringing them nearly face-to-face with the ill-equipped and ill-trained Malian military in a showdown that couldn't be ignored by the international community.
In a statement released Saturday, the bloc representing nations in West Africa, ECOWAS, said they had authorized the immediate deployment of troops to Mali. ECOWAS Commission President Kadre Desire Ouedraogo said they made the decision "in light of the urgency of the situation."
In Washington, a U.S. official confirmed that the country has offered to send drones to Mali. He could not be named because he was not authorized to discuss the matter publicly. After a telephone conversation with Hollande, British Prime Minister David Cameron agreed to send aircrafts to help transport troops, according to a statement.
who offered troop transport aircraft. Neither official could be named because they weren't authorized to discuss the matter publicly
Lt. Col. Diarran Kone, a spokesman for Mali's defense minister, said on Saturday that he was at the Bamako airport to receive a contingent of French special forces from one of their tactical units. Residents in the town of Sevare, near the line of control, said they had seen planes of white people arriving, whom they assume were French soldiers.
Hundreds of French troops were involved in the operation, code-named "Serval" after a sub-Saharan wildcat, officials in Paris said.
"The situation in Mali is serious," Le Drian said in Paris. "It has rapidly worsened in the last few days ... We had to react before it was too late," he added.
French intelligence services had detected preparations for what they described as a "major offensive" organized and coordinated by al-Qaida in the Islamic Maghreb. After a large convoy of vehicles were spotted heading toward the strategic town of Mopti on Thursday, France sent in its first unit to the Central Malian town to support the Malian combat forces, Le Drian said.
Then on Friday, Hollande authorized the use of French air power following an appeal from Mali's president. French pilots targeted a column of jihadist fighters travelling in pickup trucks, who were heading down toward Mopti from Konna. He said that the helicopter raid led to the destruction of several units of fighters and stopped their advance toward the city.
Overnight Saturday, air strikes began in the areas where the fighters operate, Le Drian said, led by French forces in Chad, where France has Mirage 2000 and Mirage F1 fighter jets stationed. Residents in the town of Lere, near the Mauritanian border, confirmed that it had been bombed.
Al-Qaida's affiliate in Africa has been a shadowy presence for nearly a decade, operating out of Mali's lawless northern desert. They did not come out into the open until this April, when a coup by disgruntled soldiers in Bamako caused the country to tip into chaos. The extremists took advantage of the power vacuum, pushing into the main towns in the north, and seizing more than half of Mali's territory, an area larger than Afghanistan.
Turbaned fighters now control all the major northern cities, carrying out beatings, floggings and amputations in public squares just as the Taliban did.
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At least 11 killed during Mali military operation

BAMAKO, Mali (AP) — A presidential spokesman says at least 11 Malians were killed and over 60 injured after the country launched a military intervention to fight al-Qaida-linked rebels advancing on a crucial town.
In a communique read on state television late Saturday, Ousmane Sy, the secretary-general at the presidential palace said that the 11 were killed in the town of Konna, which the rebels took last Thursday, prompting France to authorize airstrikes to help Mali take back the territory.
The mayor of Konna, Sory Diakite, told The Associated Press on Sunday that at least three of the dead were children who drowned after they threw themselves into the river running alongside the town in an effort to escape the bombardments. Others were killed inside their compounds, and in the street.
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Troops head to Mali, as battle for north rages

BAMAKO, Mali (AP) — The first days of the battle against Islamic extremists holding Mali's north have left at least 11 civilians dead, including three children who threw themselves into a river and drowned trying to avoid falling bombs, a presidential spokesman said Sunday as troops from Mali's neighbors are expected to join hundreds of French soldiers in the fight.
Niger, Burkina Faso, Senegal and Nigeria agreed on Saturday to send soldiers, a day after France authorized airstrikes, dispatching fighter jets from neighboring Chad and bombing rebel positions north of Mopti, the last Malian-controlled town.
State television announced that the African troops, including as many as 500 each from Burkina Faso and Niger, are expected to begin arriving on Sunday. Britain has offered the use of its transport planes in order to help bring in the soldiers, according to a statement released by Prime Minister David Cameron's office in London.
The African soldiers will work alongside French special forces, including a contingent that arrived Saturday in Bamako in order to secure the capital against retaliatory attacks by the al-Qaida-linked rebel groups occupying Mali's northern half. National television broadcast footage of the French troops walking single-file out of the Bamako airport on Saturday, weapons strapped to their bodies or held over their shoulders.
Hundreds of Malians on Sunday also left the town of Lere for neighboring Mauritania, about 70 kilometers (43 miles) away, to escape the violence. Last year's initial fighting prompted hundreds of thousands of Malians to flee the north, displacing them or making them refugees in neighboring countries.
The military operation began Friday, after the fall of the town of Konna on Thursday to the al-Qaida-linked groups. Konna is only 50 kilometers (30 miles) north of the government's line of control, which begins at the town of Mopti, home to the largest concentration of Malian troops in the country.
The United Nations had cautioned that a military intervention needed to be properly planned, and outlined a step-by-step process that diplomats said would delay the operation until at least September of this year.
The rebels' decision to push south, and the swift fall of Konna, changed everything. After an appeal for help from Mali's president, French President Francois Hollande sent in the Mirage jets and combat helicopters, pounding rebel convoys and destroying a militant base. Footage of the jets provided to French television stations showed the triangle-shaped aircrafts screaming across the sky over northern Mali. French newspaper Le Monde reported that the jets dropped at least two, 250-kilogram (550-pound) bombs over militant targets.
The human toll has not yet been calculated, but a communique read on state television late Saturday said that at least 11 Malians were killed in Konna.
Sory Diakite, the mayor of Konna, says the dead included children who drowned after they threw themselves into a river in an effort to escape the bombardments.
"Others were killed inside their courtyards, or outside their homes. People were trying to flee to find refuge. Some drowned in the river. At least three children threw themselves in the river. They were trying to swim to the other side. And there has been significant infrastructure damage," said the mayor, who fled the town with his family and is now in Bamako.
French Defense Minister Jean-Yves Le Drian said Sunday that France now has more than 400 troops in Bamako, mainly to ensure the safety of French citizens and also to send a signal to the extremists.
"We will strengthen our operation depending on the situation," he said on a political talk show with itele and Europe 1 radio. Le Drian said that Rafale fighter jets will be part of the operation and that technical support will be arriving in the hours ahead.
He said that France has international support and "the Americans seconded us" with intelligence and logistical support, though he did not elaborate.
A senior British official suggested Sunday that UK personnel could also play a role in training the Malian army.
Africa minister Mark Simmonds told Sky News television that "we may well, through a European Union mechanism, provide training and support for the Malian army to give them strength to bring back the integrity of the Malian country in totality.
"It's absolutely essential, as part of our obligations as a permanent member of the Security Council that we provide assistance when we are requested," he said.
Simmonds also gave details of the said details of Britain's logistical help, saying that a pair C-17s — large Boeing-built transport planes adapted for operating out of crude airfields — would be dispatched to the area.
Storage hangars and "sensitive sites" were among targets destroyed so far and the Islamists lost a "significant number" in the fighting, Le Drian said. "The intervention is still in progress and we will continue" as long as needed.
Human rights groups have warned that any military intervention will exact a humanitarian price. As Mali and the international community took time to prepare for intervention in the north, the rebels affiliated with al-Qaida were able to dig into the terrain, and prepare for war. The rebels occupied Mali's northern half, an area larger than Afghanistan, in the chaos following a coup in Mali's capital last March.
With no clear leader at the head of the country, Mali's military simply gave up when the rebels arrived, retreating hundreds of miles to the south without a fight. In the nine months since then, the extremists have imposed their austere and severe form Islam, and those who disobey their rules are beaten with whips and camel switches. Public amputations of the hands of thieves have become a regular spectacle.
They have also used their nine-month siege of the north to dig into the landscape, creating elaborate defenses, including tunnels and ramparts using the construction equipment abandoned by fleeing construction crews.
In addition to the civilians, a French pilot was killed after the Islamists downed his combat helicopter, in a sign of how dangerous the terrain has become even for trained, special forces.
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MLB to expand blood testing for HGH

PARADISE VALLEY, Ariz. (AP) — Major League Baseball will test for human growth hormone throughout the regular season and increase efforts to detect abnormal levels of testosterone, a decision the NFL used to pressure its players.
Baseball players were subject to blood testing for HGH during spring training last year, and Thursday's agreement between management and the Major League Baseball Players Association expands that throughout the season. Those are in addition to urine tests for other performance-enhancing drugs.
Under the changes to baseball's drug agreement, the World Anti-Doping Agency laboratory in Laval, Quebec, will keep records of each player, including his baseline ratio of testosterone to epitestosterone, and will conduct Carbon Isotope Ratio Mass Spectrometry (IRMS) tests of any urine specimens that "vary materially."
"This is a proud and a great day for baseball," commissioner Bud Selig said following two days of owners' meetings. "We'll continue to be a leader in this field and do what we have to do."
The announcement came one day after steroid-tainted stars Barry Bonds, Roger Clemens and Sammy Sosa failed to gain election to the Hall of Fame in their first year of eligibility.
Commenting on the timing, Selig noted the drug program changes had long been in the works "but it wasn't too bad, was it?"
Selig reflected on how far baseball had come on performance enhancing drug issues.
"This is remarkable when you think of where we were 10, 12, 15 years ago and where we are today," he said. "Nobody could have dreamed it."
Baseball began random drug testing in 2003, testing with penalties the following year and suspensions for first offenders in 2005. Initial penalties were lengthened from 10 days to 50 games in 2006, when illegal amphetamines were banned. The number of tests has gradually increased over the past decade.
Selig called the latest change a "yet another indication how far this sport has come."
Rob Manfred, baseball's executive vice president for economics and league affairs, said each player will be tested at least once.
"Players want a program that is tough, scientifically accurate, backed by the latest proven scientific methods, and fair," union head Michael Weiner said in a statement. "I believe these changes firmly support the players' desires while protecting their legal rights."
Selig praised the cooperation of the players association, once a staunch opponent of drug testing, in agreeing to the expansion.
"Michael Weiner and the union deserve credit," Selig said. "Way back when they were having a lot of problems I didn't give them credit, but they do."
Christiane Ayotte, director of the Canadian laboratory, said that the addition of random blood testing and a "longitudinal profiling program makes baseball's program second to none in detecting and deterring the use of synthetic HGH and testosterone."
She said the program compares favorably with any program conducted by WADA.
HGH testing remains a contentious issue in the National Football League. At a hearing last month, U.S. Rep. Elijah Cummings, the ranking Democrat on the House Oversight and Government Reform Committee, accused the NFL players' union of trying to back out of HGH testing.
"Other professional sports leagues, including the National Football League, must also implement their own robust testing regimes," Cummings and committee chairman Darrel Issa said in a statement Thursday. "Major League Baseball's announcement increases the pressure on the NFL and its players to deliver on pledges to conduct HGH testing made in their collective bargaining agreement that was signed two years ago."
NFL spokesman Greg Aiello said Thursday "we hope the MLB players' union will inspire the NFLPA to stop its stalling tactics and fulfill its commitment to begin testing for HGH. If the NFLPA stands for player health and safety, it should follow the lead of the MLB players' union and end the delay."
NFLPA spokesman George Atallah says the union is not backing out of anything but was looking to resolve scientific issues surrounding the tests. HGH testing is part of the 10-year labor agreement reached in 2011 but protocols must be agreed to by both sides.
"If the league had held up their commitment to population study, we could have been first," Atallah said.
At the time of last month's congressional hearing, NFL senior vice president Adolpho Birch called the union's insistence on a population study to determine whether current HGH tests are appropriate a delay tactic that threatened that league's leadership in drug testing matters.
"Major League Baseball and the players' union have moved a long way from the inadequate policies that were in place when Congress first addressed ballplayers' use of steroids." said Henry Waxman, ranking Democrat on the House Energy and Commerce Committee.
NOTES: Owners approved the transfer of control of the Cleveland Indians to Paul Dolan, son of owner Larry Dolan. Paul Dolan is the team's chief executive officer.
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UPDATE 2-Baseball-MLB, players agree to expand drug testing

* HGH and testosterone testing to be used this season
* WADA-accredited lab hails toughness of new MLB testing (Adds USADA comment in paras 5-7)
Jan 10 (Reuters) - Major League Baseball and the players' union have agreed to expand their drug program to include random in-season blood testing for human growth hormone and a new test for testosterone, they said on Thursday.
The advanced testing will start this season, in what will be the sternest doping program in major North American professional sports.
"This agreement addresses critical drug issues and symbolizes Major League Baseball's continued vigilance against synthetic human growth hormone, testosterone and other performance-enhancing substances," MLB commissioner Bud Selig said in a statement.
The new steps moved baseball well ahead of the National Football League (NFL), which does not test for HGH or have a similar test for testosterone.
The U.S. Anti-Doping Agency (USADA) challenged the NFL Players' Association (NFLPA) to follow suit in agreeing to such tests.
"This is a strong statement by the players and the league not only confirming the scientific validity of the HGH blood test and the benefit of longitudinal testing, but also the importance of clean athletes' rights and the integrity of the game," USADA said in a statement.
"This agreement, following the recent Congressional hearings on testing in the NFL, leaves no reason for the NFLPA not to step up and implement the same to give its players an equal level of protection and confidence that they deserve a level, drug-free playing field in the NFL."
Michael Weiner, executive director of the MLB Players' Association, said Major League players supported the expanded program.
"Players want a program that is tough, scientifically accurate, backed by the latest proven scientific methods, and fair," said Weiner in a statement.
"I believe these changes firmly support the players' desires while protecting their legal rights."
The announcement came one day after the players' union criticised results of the balloting for the Baseball Hall of Fame, in which no one received enough votes for enshrinement in what appeared to be a referendum on widespread doping during what has become known as the game's 'Steroids Era'.
All-time home run king Barry Bonds and seven-time Cy Young winning pitcher Roger Clemens, have playing records that would have ordinarily made them certain Hall of Famers.
But both players have been linked to performance enhancing drugs and punished by voters, receiving about half the ballots required for election.
Major League Baseball, striving to remove the stain of doping, was the first major sport in the United States to test for HGH in an agreement with the union in November 2011.
MLB has been conducting random blood testing for the detection of HGH among minor league players since July 2010 and had previously been testing major leaguers during spring training and off-season.
To detect testosterone use, the World Anti-Doping Agency (WADA)-accredited Montreal laboratory will establish a program in which a player's baseline testosterone/epitestosterone (T/E) ratio and other data will be maintained in order to enhance its ability to detect use of the drug and other banned substances.
Christiane Ayotte, the Director of the Montreal Laboratory, praised the steps baseball has taken.
"The addition of random blood testing and a longitudinal profiling program makes baseball's program second to none in detecting and deterring the use of synthetic HGH and testosterone," she said in a statement.
Doping in baseball has not disappeared.
In the last year, Melky Cabrera of the San Francisco Giants, who was leading the league in batting average, and Oakland A's pitcher Bartolo Colon tested positive for testosterone and were suspended.
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MLB, players agree to expand drug testing

(Reuters) - Major League Baseball and the players' union have agreed to expand their drug program to include random in-season blood testing for human growth hormone and a new test for testosterone, they said on Thursday.
The advanced testing will start this season, in what will be the sternest doping program in major North American professional sports.
"This agreement addresses critical drug issues and symbolizes Major League Baseball's continued vigilance against synthetic human growth hormone, testosterone and other performance-enhancing substances," MLB commissioner Bud Selig said in a statement.
The new steps moved baseball well ahead of the National Football League (NFL), which does not test for HGH or have a similar test for testosterone.
The U.S. Anti-Doping Agency (USADA) challenged the NFL Players' Association (NFLPA) to follow suit in agreeing to such tests.
"This is a strong statement by the players and the league not only confirming the scientific validity of the HGH blood test and the benefit of longitudinal testing, but also the importance of clean athletes' rights and the integrity of the game," USADA said in a statement.
"This agreement, following the recent Congressional hearings on testing in the NFL, leaves no reason for the NFLPA not to step up and implement the same to give its players an equal level of protection and confidence that they deserve a level, drug-free playing field in the NFL."
Michael Weiner, executive director of the MLB Players' Association, said Major League players supported the expanded program.
"Players want a program that is tough, scientifically accurate, backed by the latest proven scientific methods, and fair," said Weiner in a statement.
"I believe these changes firmly support the players' desires while protecting their legal rights."
The announcement came one day after the players' union criticized results of the balloting for the Baseball Hall of Fame, in which no one received enough votes for enshrinement in what appeared to be a referendum on widespread doping during what has become known as the game's 'Steroids Era'.
All-time home run king Barry Bonds and seven-time Cy Young winning pitcher Roger Clemens, have playing records that would have ordinarily made them certain Hall of Famers.
But both players have been linked to performance enhancing drugs and punished by voters, receiving about half the ballots required for election.
Major League Baseball, striving to remove the stain of doping, was the first major sport in the United States to test for HGH in an agreement with the union in November 2011.
MLB has been conducting random blood testing for the detection of HGH among minor league players since July 2010 and had previously been testing major leaguers during spring training and off-season.
To detect testosterone use, the World Anti-Doping Agency (WADA)-accredited Montreal laboratory will establish a program in which a player's baseline testosterone/epitestosterone (T/E) ratio and other data will be maintained in order to enhance its ability to detect use of the drug and other banned substances.
Christiane Ayotte, the Director of the Montreal Laboratory, praised the steps baseball has taken.
"The addition of random blood testing and a longitudinal profiling program makes baseball's program second to none in detecting and deterring the use of synthetic HGH and testosterone," she said in a statement.
Doping in baseball has not disappeared.
In the last year, Melky Cabrera of the San Francisco Giants, who was leading the league in batting average, and Oakland A's pitcher Bartolo Colon tested positive for testosterone and were suspended.
"I am proud that our system allows us to adapt to the many evolving issues associated with the science and technology of drug testing," Selig said. "We will continue to do everything we can to maintain a leadership stature in anti-doping efforts in the years ahead.
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Amazon and Samsung are running away with the Android tablet market

Following the successful launch of Amazon’s Kindle Fire tablet, Android vendors saw a beacon of hope in a market that had been dominated by Apple’s (AAPL) iPad since 2010. The Android tablet space has since become flooded with hundreds of products from a wide-range of companies, but there are only two companies that matter.
[More from BGR: ‘Apple is done’ and Surface tablet is cool, according to teens]
According to data from app analytics and ad service Datalytics, Samsung (005930) and Amazon (AMZN) are starting to run away with the Android tablet market, Venture Beat reported.
[More from BGR: Is BlackBerry back? Strong early BlackBerry 10 demand could signal RIM comeback]
Ad impressions on the 7-inch Kindle Fire HD grew 322% from November to the end of December, while impressions on the Galaxy Tab 10.1 and Tab 7.7 increased a combined total of 150%. Google’s (GOOG) Nexus 7 and Barnes & Noble’s (BKS) Nook Tablet were the next closest with 70% and 62% growth in December, respectively.
The firm’s data also confirms Samsung’s dominant smartphone share, which saw a combined total of 214% growth in the past month.
The data also revealed that the iPhone 4S is still the most popular Apple smartphone with 40% of the market, compared to the iPhone 4′s 36% share and iPhone 5′s 18% share. On the iOS tablet side of things, the iPad mini is apparently selling a little slower than the iPad 4. The fourth-generation tablet had an 8% share of the iPad market, slightly higher than the mini’s 6% share.
Datalytics’ information comes from tens of thousands of apps installed on more than 60 million devices.
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Expect more suffering for Microsoft and Intel in 2013

The PC industry is in shambles and no one is going to be hit harder than Microsoft (MSFT) and Intel (INTC), according to the latest forecasts from market research firm Canalys. Consumers continue to favor Android and iOS tablets over Windows and Intel (a.k.a., “Wintel”) PCs. The research firm found that combined shipments of desktops, netbooks and notebooks in the fourth quarter of 2012 declined roughly 10% year-over-year. The Wintel PC market is expected to suffer further and is estimated to fall from a 72% market share in 2012 to a 65% share in 2013, representing a 5% decline in unit shipments.
[More from BGR: ‘Apple is done’ and Surface tablet is cool, according to teens]
“Pads and, increasingly, smartphones can perform many of the day-to-day computing tasks that most people require,” said Pin-Chen Tang an analyst with Canalys. “Wintel PCs are becoming less likely as an individual’s first choice of computing device for everyday tasks, such as sending e-mail or web browsing.”
[More from BGR: Is BlackBerry back? Strong early BlackBerry 10 demand could signal RIM comeback]
The launch of Windows 8 was meant to revitalize the market, however it has had little to no impact so far. Despite sales roughly equal to its predecessor, a majority of consumers have shunned the new operating system and instead favored OS X or Windows 7. The overall consensus from analysts, consumers and the media is that Microsoft’s Metro user interface is too confusing for the average PC buyer.
“The launch of Windows 8 did not reinvigorate the market in 2012, and is expected to have a negative effect as we move into 2013,” explained Canalys analyst Tom Evans. ”Windows 8 is so different to previous versions that most consumers will be put off by the thought of having to learn a new OS. An additional barrier is the potential increase in cost that Windows 8 brings, as it is perceived that a PC with a touch-screen is needed to get the best user experience. In the current economic climate, this will be enough to make people delay purchases as they wait for prices to fall.”
Canalys predicts that between 2014 and 2016, the PC industry will see a larger mix of different form-factors as consumers become more comfortable with touchscreens and Windows 8. In addition, the firm expects the tablet market to grow an average of 37% each year between 2012 and 2016, with volumes reaching 389 million units and accounting for 59% of all PC shipments. The tablet growth will be driven by Apple’s (AAPL) iPad, iPad mini, low-cost Android alternatives and hybrid PCs such as the Surface Pro.
“It is clear that Microsoft is now pushing touch as the primary input method for Windows, but keyboard and mouse are still needed for legacy applications,” Canalys analyst Tim Coulling added. “Following the launch of the iPhone, the shift from keypad/keyboard to touch input on smart phones was rapid. The popularity of pads and the inevitable decline in touch-panel prices will cause the same trend to emerge in the PC market
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Expect more suffering for Microsoft and HP in 2013

The PC industry is in shambles and no one is going to be hit harder than Microsoft (MSFT) and Intel (INTC), according to the latest forecasts from market research firm Canalys. Consumers continue to favor Android and iOS tablets over Windows and Intel (a.k.a., “Wintel”) PCs. The research firm found that combined shipments of desktops, netbooks and notebooks in the fourth quarter of 2012 declined roughly 10% year-over-year. The Wintel PC market is expected to suffer further and is estimated to fall from a 72% market share in 2012 to a 65% share in 2013, representing a 5% decline in unit shipments.
[More from BGR: ‘Apple is done’ and Surface tablet is cool, according to teens]
“Pads and, increasingly, smartphones can perform many of the day-to-day computing tasks that most people require,” said Pin-Chen Tang an analyst with Canalys. “Wintel PCs are becoming less likely as an individual’s first choice of computing device for everyday tasks, such as sending e-mail or web browsing.”
[More from BGR: Is BlackBerry back? Strong early BlackBerry 10 demand could signal RIM comeback]
The launch of Windows 8 was meant to revitalize the market, however it has had little to no impact so far. Despite sales roughly equal to its predecessor, a majority of consumers have shunned the new operating system and instead favored OS X or Windows 7. The overall consensus from analysts, consumers and the media is that Microsoft’s Metro user interface is too confusing for the average PC buyer.
“The launch of Windows 8 did not reinvigorate the market in 2012, and is expected to have a negative effect as we move into 2013,” explained Canalys analyst Tom Evans. ”Windows 8 is so different to previous versions that most consumers will be put off by the thought of having to learn a new OS. An additional barrier is the potential increase in cost that Windows 8 brings, as it is perceived that a PC with a touch-screen is needed to get the best user experience. In the current economic climate, this will be enough to make people delay purchases as they wait for prices to fall.”
Canalys predicts that between 2014 and 2016, the PC industry will see a larger mix of different form-factors as consumers become more comfortable with touchscreens and Windows 8. In addition, the firm expects the tablet market to grow an average of 37% each year between 2012 and 2016, with volumes reaching 389 million units and accounting for 59% of all PC shipments. The tablet growth will be driven by Apple’s (AAPL) iPad, iPad mini, low-cost Android alternatives and hybrid PCs such as the Surface Pro.
“It is clear that Microsoft is now pushing touch as the primary input method for Windows, but keyboard and mouse are still needed for legacy applications,” Canalys analyst Tim Coulling added. “Following the launch of the iPhone, the shift from keypad/keyboard to touch input on smart phones was rapid. The popularity of pads and the inevitable decline in touch-panel prices will cause the same trend to emerge in the PC market.
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News Summary: US home sales rise 2.1 pct. in Oct.

SALES RISE: U.S. sales of previously occupied homes rose moderately in October, helped by improvement in the job market and record-low mortgage rates. Sales rose 2.1 percent in October to a seasonally adjusted annual rate of 4.79 million according to the National Association of Realtors.
INVENTORIES: A decline in housing inventory is helping push prices higher. There were only 2.14 million homes available for sale at the end of the month, the lowest in 10 years.
GAINS LIKELY TO CONTINUE: As the economy slowly recovers, more people have started looking to buy homes or rent apartments. Mortgage rates are at record lows and rents are rising. That makes buying a home more attractive.
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