"Handhelds That Are Less of a Handful - A couple of Palm-based products take a big step up the evolutionary ladder"
APRIL 9, 2001 BusinessWeek
"A handheld computer, apologies to the Duchess of
Windsor, cannot be too thin or too light. Palm
Computer (PALM ), taking the dictum to heart, has
come up with a new line that retains the form of the
popular Palm V while adding an expansion slot and a
color display. Partner and rival Handspring has
entered the field with the sleek Visor Edge, which
retains the Springboard expansion slot in a Palm
V-like design. The new products should help Palm
and its licensees hold and even increase their
dominant market share for the time being despite a
stiffer challenge from Microsoft's PocketPC (MSFT
).
The $399 Palm m500, which will be available in
April, is practically a dead ringer for the Palm V in
size, shape, and price. The $449 m505 adds a color
screen. The big difference in the new models is a slot
that accepts a postage-stamp-size card. Currently,
the cards offer memory expansion and software including a $29.95 game card
and U.S., European, and Asian city guides ($39.95 each). Developers plan
various accessories, with the most exciting being wireless communications
options. If the Handspring (HAND ) experience is any guide, however, it will
be months before the first of these hits the market.
The new Palm has a rechargeable battery that uses a relatively new technology
called lithium polymer to pack more power. Palm claims up to five weeks of
normal use per charge for the monochrome model and about three weeks for
the color version. I would guess that two weeks is closer to the mark, but that's
plenty for most business trips. The sync cradle doubles as a charger. This is the
first Palm model to use the universal serial bus instead of the older serial
connection (a serial version is a $29.95 option).
One way Palm extended battery life and kept the color unit thin was to use
front lighting rather than the brighter and more even back lighting. The result is
a screen that is a bit dimmer than the Palm IIIc or Visor Prism, but still quite
acceptable. Most Palm applications don't make effective use of color, but the
m505 is much easier to read in dim light than the monochrome model.
The Visor Edge, which costs $399, is similar to the m500 in size and function.
It is rectilinear, though, where the Palm is curvy and comes with a flip-up metal
cover instead of a leather flap. The stylus clips to the outside instead of fitting in
a slot. The arrangement seems secure, but I managed to lose mine within a
week. The Edge is too small for Handspring's standard Springboard slot for
accessories, so an adapter clip allows use of Springboard modules, such as the
VisorPhone. Unfortunately, they hang somewhat awkwardly over the back. In
time, models will be designed for the new connector, but they won't fit snugly
within the body of the Visor, as they do with the older models.
The new Palms come with version 4.0 of the Palm operating system, which
supports the accessory slot and has enhancements that make the Palm better at
wireless communications through add-ons. Meanwhile, Palm will be totally
upgrading the software. The next version, probably at least a year off, will
allow a move to a faster processor and a higher-resolution screen.
ET TU, IBM? Most Palm buyers use little beyond the contact and calendar
functions. For them this next upgrade won't make much difference. But to
retain those who seek more from a handheld, especially corporate customers
who want custom applications and secure wireless communications, progress is
vital. Palm has wrung all it can from the Motorola DragonBall, a 25-year-old
processor. And the coarse 160-by-160-pixel display used on all Palms limits
graphics capabilities.
Meanwhile, Palm's competitors aren't standing still. Microsoft PocketPCs,
including the new $359 Hewlett-Packard Jornada 525, are getting thinner,
lighter, and cheaper. And IBM (IBM ) is widely rumored to be readying a
challenger of its own for the corporate market.
The new Palm and Handspring products are solid, evolutionary steps. But to
maintain its lead over improving competition, Palm may have to pick up the
pace.
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