"Palm invests in maker of pint-sized printers"
By Ian Fried
Staff Writer, CNET News.com
January 29, 2001, 5:10 p.m. PT
Handheld maker Palm has taken a stake in a company that hopes to make millions of
low-cost digital cameras and portable printers in its factories in China.
Palm has invested in Milpitas, Calif.-based SiPix, which said Monday it has completed a $100
million round of funding in advance of its launch next month of a line of low-cost digital
cameras. SiPix is also working on a pint-sized thermal printer that can be used with handhelds
that use Palm's operating system. A thermal printer uses heat to transfer images to special
paper.
A Palm representative
confirmed that the Santa
Clara, Calif.-based company
has a stake in SiPix but did
not disclose the size of its
investment. The
representative said the
nearly 2-year-old SiPix has
technology of interest to
Palm, but did not offer
details.
Palm has taken a stake in
several companies since
announcing its Palm
Ventures fund in
September. Last week, the
company announced an
investment in ePhysician.
The idea of a portable printer
is not new. There was a thermal printer, similar to a cash register printer, available more than a
decade ago for the Sharp Wizard personal organizer. However, the thermal printers did not
prove terribly popular.
IDC analyst Ron Glaz said that even though portable printers have not been popular
historically, the interest in such a device might be greater today.
"Back in the '80s there really wasn't any need for paper," Glaz said. "With handheld technology
becoming also wireless, there is an increased need for being able to print."
In addition, SiPix is working on several digital cameras, including some that can function as
PC Web cameras. Although such products are abundant, SiPix President Dan Ting said his
company can deliver better value.
"We believe we can build the products at a much lower price," Ting said.
The company hopes to produce 1 million digital cameras per month by the end of the year. It
already has factories in Zhuhai and Shanghai, China, and is building a new, larger facility also
in Zhuhai.
Glaz said that the biggest challenges for SiPix will be to create a presence in the distribution
channel and to build a brand name for itself.
"It's not that difficult," Glaz said. "It's just a question of, 'Do you have enough money?'"
Glaz noted that the company appears to be off to a good start, with funding from Palm,
Goldman Sachs, CitiCorp Capital, Worldview Technology Partners, Baring Private Equity
Partners and Telligent Investment Management.
SiPix executives said they know they may not become a household name overnight.
"We understand it will take a little time," said Tenny Sin, a former executive at scanner maker
Umax who joined SiPix last month as vice president of sales and marketing.
yahoofin.cnet.com |
