Before you sell your MSFT stock tomorrow..........Microsoft's third try to
go mobile
Steve Ballmer has a "good feeling" about the Pocket PC
Microsoft is making its third attempt to muscle
into the market for handheld computers.
Its new Pocket PC operating system replaces
Windows CE, which failed to beat rivals Palm
and Psion - but analysts warn the new
machines could be too expensive to be a
success.
Microsoft's mobile
devices have a poor
image. Many customers
found Windows CE slow
and cumbersome.
With a desktop similar
to that of PCs running
Windows 95, the tiny
screens of digital
assistants were just too
cluttered to be
user-friendly.
Now Microsoft promises a completely new
approach.
The software's code has been rewritten from
scratch, and Pocket PC was designed in close
co-operation with Microsoft's partners
Compaq, Casio and Hewlett-Packard.
The first Pocket PC computers are expected to
go on sale in June, priced between $499 and
$599.
This is at the high end
of the market for
"personal digital
assistants" (PDA), but
Microsoft chief
executive Steve
Ballmer says the high
price will be made up
for by "a little extra
functionality".
Targetting Palm
Pocket PC devices
have the usual
features of organisers like word processor,
data base and diary, but include a colour
screen, a fully functional web browser, e-mail,
Microsoft's new ClearType technology to read
books and a media player for audio and video
files - including MP3.
Expansion slots provide
connection to additional
memory, modems or a
digital camera, while
Pocket PC applications
can be integrated with
popular Microsoft
products like Excel, Word and Outlook on PC
through an infrared connection.
Psion PDAs, which have been successful in
Europe, and Palm Pilots, which dominate the
US market, offer some of these functions, but
not all of them.
The Palm Pilot VII, for example, has a wireless
net connection, but allows access to only a
few web sites - although it is cheaper at $449.
In its not very subtle marketing, Microsoft tries
to exploit the difference. Full-page adverts in
US newspapers showed a Palm Pilot III with
the caption "Simple is what you call yourself
when you don't have a lot to offer".
Market share
But while Microsoft is belittling its competitor,
it is striving to emulate its rival. Pocket PC's
interface has larger icons and fewer drop-down
menus.
Despite the high price, some analysts believe
that Pocket PC could make an impact.
"Palm ought to be
running scared", said
Michael Gartenberg, a
senior analyst with
Gartner Group, who
points out that Palm
has no apparent plans
to include similar
functionality in its
PDAs.
In the United States,
Pam currently has
about 70% of the
market, while Microsoft
takes just 10%. In Europe, Palm is weaker,
with a 40% market share, while Psion's Epoc
software accounts for 28% and Windows CE
for 27%, according to IDC figures.
But Microsoft is not in the clear yet. Palm
owners may be reluctant to switch to Pocket
PC, as only one of Microsoft's three partners is
offering software that allows the transfer of
data from their old Palm Pilots to the new
machines.
And Pocket PC has another handicap, well
known from other Microsoft software: Cheap
Pocket PC devices are said to have barely
enough memory to truly use the full
functionality of the operating system.
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WORLD NEWS SUMMARY
See also:
21 Nov 99 | Sci/Tech
Microsoft's mobile
challenge
01 Feb 00 | Business
The Psion factor
03 Mar 00 | Business
Palm off to $53bn
debut
02 Mar 00 | Business
Psion opts for mobile
web
09 Dec 99 | Business
Ericsson, Microsoft
build the 'poor man's'
phone
09 Dec 99 | Business
The mobile internet
race
15 Dec 99 | Business
Casio and Siemens go
mobile
Internet links:
Microsoft PocketPC
Psion
Palm
Compaq handhelds
Hewlett Packard
handhelds
Casio
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