Is This the Death Knell for Android Tablets?

Microsoft’s (NASDAQ:MSFT) new-found focus on boosting its presence in mobile and tablet products — just look at its recent Nook tie-up — has gone over rather well with PC makers like Hewlett-Packard (NYSE:HPQ), Acer and Dell (NASDAQ:DELL). Weak demand for tablets running Google’s (NASDAQ:GOOG) Android OS has forced these companies to consider alternatives for utilizing their R&D resources.

The winner here is Windows 8, as these vendors focus on developing products for its operating system, which is a key connect in Microsoft’s evolving ecosystem spanning PCs, tablets, and smartphones.

Compal Electronics has already carved out a team of 300 from its 1,000-strong pool of engineers that will focus exclusively on developing applications for Windows 8.