Son of Palm - cheaper, faster, expandable
cnn.com
(CNN) -- The duo that brought the world the PalmPilot and recently formed
their own company debuted on Tuesday a faster, cheaper and far more
versatile competitor -- a handheld computer called Visor.
Visor, the first product released by Handspring, will run the latest Palm
operating system but cost about half as much. The cheapest version, the
Visor Solo, will sell for $149, although that comes without a cradle for
transferring files to and from a desktop machine, also known as syncing.
The middle-tier model, simply called the Visor, includes a synchronization
cradle and 2 MB of memory and retails for $179. This version, with its low
price point and standard features, is targeted to consumers.
Business and power users may opt for the $249 Visor Deluxe with its 8 MB
of RAM, a cradle and a leather case.
The Visor runs from 10 to 20 percent faster than the Palm III and V, but
speed was not the goal in designing Visor, Handspring co-founder Jeff
Hawkins said. Expandability was -- with miniature modules the size of two
stacked Wheat Thins that snap into the back of the Visor to eventually run
peripherals ranging from MP3 players to voice recorders.
"The real story is about how these modules work," said Hawkins, who
co-founded Handspring with Donna Dubinsky. "It's a subtle one because
people don't understand how they work. I think what we've done here is
created the first true plug-and-play expansion capability."
The so-called Springboard modules instantaneously install their software. A
cell phone module is planned for release in the first half of 2000, Hawkins
said.
Orders will be taken by phone and filled in October.
The cheapest Palm sold by 3Com, the Palm IIIe, retails for $229. 3Com
announced Monday that it plans to spin off its popular PalmPilot hand-held
computer business early next year. . The concept behind the Visor Solo is to
target those who already own another Visor and want a second hand-held
and avoid the cost of the cradle, Hawkins said.
Also, some of the Visor applications have no need for syncing, such as the
back-up memory card.
Supply question
It remains to be seen if Handspring can
promptly fill the orders it receives.
"We are in limited production,"
Hawkins said. "We will not have a lot
of units. That's why we're not in broad
distribution today." He declined to
disclose exactly how many units have
been made so far.
Despite positive advance gossip on the product, Hawkins, a veteran of
designing, developing and releasing new computer products, said he was
taking a cautious approach to preparing for possible demand for the
product.
"It's not like we have channel orders that we are fulfilling," he said.
The production process ramps up slowly. "You can't go from start-up to
millions of units right away," he adds.
The Visors will run on AAA alkaline batteries and are 100 percent
compatible with existing Palm products, Hawkins said.
The screen quality is roughly the same as the newer Palm IIIe and V
products.
All the visor models come with a built-in microphone, but it works only
when a module is inserted that makes use of it, such as a cell phone or voice
recorder.
Markets for everyone
Hawkins says he is not in competition
with 3Com, his former employer, and
its PalmPilot lines. In fact, the two
companies have partnered, with
Handspring paying a royalty to 3Com
for every unit it ships.
"We are not going to take market
away from Palm," he said. "We are
going to grow this market. Their market is growing. Our market is growing."
The Palm Pilot has become one of the fastest-selling high-tech devices of the
decade.
After stints with Intel and GriD Systems, where he designed laptops,
Hawkins took a leave and developed an algorithm that allowed computers
to recognize patterns and, hence, handwriting.
Returning to GRiD, Hawkins applied some of these ideas to the GRiDPad, a
reasonably successful pen-based computer. "About this time, I had an
epiphany," Hawkins says. "Someday, everybody is going to own something
like this. But it's got to be a lot smaller and sell for under $ 300."
To chase that dream, he started Palm Computing in 1992.
The hand-held computer market seemed doomed after Apple introduced its
now-infamous Newton, but Hawkins kept going with the help of Donna
Dubinsky, a Harvard MBA with a great Silicon Valley track record.
Hawkins insisted that the computer be small enough to slip into a pocket.
They worked out the technical issues, then turned to the financial ones.
After being rejected repeatedly (by investors who are now kicking
themselves), they found an angel in U.S. Robotics, which not only agreed to
fund the Palm Pilot but offered to buy the whole company. 3Com later took
over U.S. Robotics.
Pre-launch vacations
Despite the founders? strong work ethic, several Handspring employees,
including Dubinsky, Hawkins and Rob Haitani, Handspring?s director of
product marketing, have been out of town or taking vacations lately ?
somewhat odd considering they?re so close to their first product launch.
Some might think they?re ducking the press, trying to keep the heat low on
their new baby before the release. Not so, says Hawkins.
?This is not an Internet start-up,? Hawkins said. ?We?re building a consumer
electronics company. We're building hardware. You start it going and a year
later you got a product. We've been doing the same thing for like a year.
We're experienced at this. We've done this before.?
Hawkins says the product has been done for some time, and Handspring has
spent the last few weeks dealing with the press.
Plug-and-play capability
After releasing three initial modules available in October, the more jazzy and
complex modules will dribble out, Hawkins said. Scheduled modules include
an MP3 player, GPS receiver and cell modem as well as productivity
software and games.
Most modules will use the Visor?s power supply. For the few that need
more juice ? such as the cell modem ? the module itself will have a separate
battery compartment.
Hawkins is particularly proud of the modules? plug-and-play capability.
After sliding the module into its slot, the module automatically installs its
software and begins running ? no matter what the Visor is doing at the time.
Once you?re done with the module, just take it out. The program uninstalls
itself instantly and disappears.
?Adding hardware to any computer is hard,? Hawkins said. ?The reality is,
you're sticking in disks, trying to run installers. We do a very sophisticated
installation and de-install but it's invisible to the user and happens almost
instantaneously.?
The Springboard exemplifies a goal of the Visor: simplicity.
?The reason the Palm is so successful is the simplicity of using them,?
Hawkins said. ?They kind of just work.?
A year from now, the Springboard capability will have sparked a wide
variety of modules, he said.
"There is going to be a whole economy built around them,? he said. ?It
seems to have hit a nerve with developers. They're saying, 'We've been
waiting for something like this.'"
CNN Interactive Technology Editor Ian Hopper and Fortune magazine
contributed to this report.
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