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Technology Stocks : Personal Digital Assistants (PDA)

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To: KevRupert who started this subject12/22/2000 5:56:01 PM
From: KevRupert   of 817
 
Compaq iPaq Management's Response:

brighthand.com

Compaq's letter to Brighthand Readers


December 19, 2000

Dear Brighthand Readers:

We appreciate the enthusiasm many of you have expressed regarding the iPAQ Pocket PC. Steve Bush has been keeping you well informed about our product, and recently took the time to publish an article on the Brighthand forum regarding some of your concerns with the early units. We are grateful for all of Steve's efforts, and in this letter we would like to offer some additional comments to explain the steps we've taken to correct these issues, while answering some of your questions. Mainly we want you to know that we are listening and working hard to make our products and services even better.

As you know, the iPAQ Pocket PC has been phenomenally successful, and we appreciate your patience as we try to meet unprecedented demand. We are increasing production as quickly as possible to fulfill orders. We more than doubled production in the third and fourth quarters of this year, and our plan for the first quarter of 2001 is to increase production by an additional 40%. While this will greatly increase the number of units available, we will still be behind current demand for the product. We can only ask for your understanding during this period while we continue to increase production.

Demand for the Expansion Packs also continues to increase, and although we are still not able to meet demand entirely, we expect to catch up during the first quarter.

Now regarding your concerns about product quality. A small percentage of customers have experienced issues with their iPAQ Pocket PCs. While it is only a small percentage, Compaq takes these situations very seriously and we have been working to implement the changes necessary to prevent them in the future. We've made changes in both manufacturing and product specifications; new manufacturing processes correct the particles under the screen, stylus, battery door and "flipped screen" issues referenced in Steve's article.

We have also implemented a customer service process to resolve these issues for customers who have contacted our support line. Customers with the display particle problem were given a case number while we put the right solution in place to repair their unit. Compaq Customer Service has now begun the process of repairing units for these customers in the U.S. and Canada. Customer Service will send a replacement unit to the customer along with a pre-paid return carton. In the future, we will repair units under the standard Compaq warranty process.

The article also referenced two additional concerns. The first situation occurs when using handwriting input with the stylus - the digital ink appears to "jump" on the screen. To minimize this, simply apply slightly more pressure when using the stylus while in any application using handwriting input.

The second concern is a "popping" noise. This is the sound of the audio amplifier being turned on and off. The product is designed to turn the amplifier on and off periodically to conserve battery life, so the noise will not be completely eliminated. In this case, the noise will be reduced with a ROM upgrade to be released in January. While full details of the program won't be announced until then, the iPAQ Pocket PC is unique in that the ROM is flash-based and can be upgraded with a new image downloaded from the Support section of the Compaq web site.

Again, thank you for your interest in the iPAQ Pocket PC. We believe this is the best handheld on the market, and we hope you will stay with Compaq as we strive to catch up with orders. Next year, we will introduce a number of new Pocket PC products, options and enhancements that will make the iPAQ Pocket PC experience even more enjoyable. Until then, we appreciate your commitment to Compaq.

Happy Holidays!
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