Compaq Says iPAQ Demand Outstripping Supply
DAVOS, Switzerland (Reuters) - Personal computer maker Compaq Corp said on Monday that demand for its handheld computer iPAQ was outpacing supply 25 times and that it was struggling with component shortages.
The group said last week it expected to sell $500 million worth of wireless computers in Europe in 2001 with its recently introduced iPAQ generating the bulk of these sales.
The iPAQ, which is sold with monochrome and color screens, can be bought in shops for between 500 euros and 800 euros, depending on features.
``It is the high resolution screen. That has been a constraint,'' Compaq Chief Executive Michael Capellas told journalists at the World Economic Forum (news - web sites).
He said Compaq, which commanded a 6.2 percent market share in the Western European market for handheld computers in 2000, hopes to overcome the supply problems within half a year.
``We have designed alternate displays which will come into production soon, and black and white screens. Over the next two to three months we will continue to face demand in excess of supply. You'll see us close the gap over the next four to five months,'' Capellas said. He also said Compaq would follow the example of mobile phone makers such as France's Sagem to launch a handheld computer with a built-in cell phone.
``Are we going to see these (handheld computers) with a cellular phone in it? The answer is yes,'' Cappellas said.
But he would not say when or with whom Compaq would introduce such as computer phone.
Microsoft chairman Bill Gates (news - web sites) said that pocket computers, such as iPAQ, were proving to be a favorite among consumers, but their rapid sales growth would not offset declining personal computer (PC) growth.
However, Capellas added that investors should probably look at handheld computers as just another computer to access the Internet, often used in conjunction with a PC.
``The base units (PCs) may have one growth rate, but the whole category (of Internet access devices) needs to be redefined. I don't see that (category of all Internet access devices) slowing down at all,'' he said.
Subject 50522 |
