Microsoft will no longer launch products under its Windows RT line and will instead merge the product line into the software giant's next-generation Windows, codenamed Blue, according to sources from the upstream supply chain.

Although the PC supply chain had pushed the Windows on ARM (WoA) platform aggressively, the Windows RT's name, which has misled most consumers into believing that the operating system is able to support all existing x86 Windows programs, the lack of apps, as well as compatibility issues have all significantly damaged demand.

The next-generation of Windows is expected to make its first appearance at the Microsoft Build Developer Conference 2013, hosted from June 26-28 in San Francisco, the US.

The sources believe that Wintel PC demand is likely to drop significantly before Intel and Microsoft's next-generation products show up in the second half of the year.