Mobile computing is growing; battery needs will too. Some reading while waiting. Ram
Compaq to surpass Palm in handheld PC revenue, research firm reports
June 18, 2001: 8:01 a.m. ET
SAN JOSE, Calif. (AP) - Palm remains the world's leading supplier of handheld computers, but not for long, according to a report Monday from market research firm Gartner Dataquest.
Gartner said Palm will lose its top spot in terms of revenue to Compaq Computer (CPQ: Research, Estimates) in the second calendar quarter.
Palm (PALM: Research, Estimates) will ship about 700,000 units worldwide, taking in $130 million to $135 million in hardware-related revenue for its fiscal quarter ended June 1. That's a dramatic drop from the record $507 million it took in two quarters ago. Palm is due to announce results for the quarter the week of June 25.
By comparison, Houston-based Compaq, whose current quarter ends June 30, is expected to ship as many as 500,000 units, resulting in revenue of more than $200 million. Gartner Dataquest did not have historical revenue comparisons for Compaq, but said the company shipped 250,000 units two quarters ago.
Handspring (HAND: Research, Estimates), which uses the Palm operating system in its handheld Visors, comes in third, with a projected $62 million in sales and 330,000 units for its fiscal quarter ending June 30.
Palm's loss of revenue leadership -- its first since the Palm debuted in 1996 -- stems partly from the fact that the average price of Compaq's rival iPAQ devices is about $500, or twice that of Palm products, according to analysts.
But it also underscores an erosion of Palm's once high-flying dominance in the young and fast-growing industry of personal digital assistants.
Palm currently is struggling with an inventory glut and a sales slowdown -- both economy-driven and somewhat
self-imposed because of a transition to a new product line.
At the same time, the Santa Clara, Calif.-based company has lagged competitors, especially in wireless features, and improvements to its operating system have not been significant, said Ken Dulaney, vice president of mobile computing at Gartner Dataquest. "This lack of innovation is a big contributor to its declining fortunes," he said.
Microsoft's (MSFT: Research, Estimates) competing Pocket PC operating system, which is used in the iPAQ, is gaining ground as a result, though it remains a distant second to Palm's overall market share of handheld devices.
Dulaney thinks Palm will be able to regain its revenue crown from Compaq in perhaps one or two quarters, after it sifts through its troubles. But, he said, the company "must make some changes" to "achieve the level of profitability it enjoyed in the past."
Compaq and SAP Team to Deliver Enhanced Mobile Solutions
Mobile Customers to Experience Faster Deployment, Reduced Implementation Expenses and Increased Productivity Through the Compaq Mobile Business Starter Solution
HOUSTON, June 13, 2001 - Compaq Computer Corporation (NYSE: CPQ) and SAP AG (NYSE: SAP) announced today they will deliver end-to-end mobile solutions through a new pilot called the Compaq Mobile Business Starter Solution, designed to demonstrate faster deployment, reduced implementation costs, and increased productivity for customers. This solution, incorporating the mySAP Mobile Business Solutions, will enable customers to experience immediate business value by allowing access to a variety of enterprise applications on the Compaq iPAQ Pocket PC and the Compaq iPAQ BlackBerry.
One of its kind in the industry today, the Mobile Business Starter Solution relies on engineering testing of mobile technologies to size and characterize the key infrastructure and software elements, and provides the end-to-end components needed to implement the mobile project.
"Compaq is working with SAP to thoroughly test all of our mobile devices for SAP solutions to ensure maximum benefit to the customer," said Ron Eller, vice president, Industry Standard Server Group, Compaq. "The vast knowledge we can bring from over 10,000 SAP installations, coupled with our market-leading ProLiant servers and portfolio of access products, will allow us to assist our joint customers with the implementation of complete mobile solutions"
"Working closely with Compaq, we are delivering a complete end-to-end solution which will allow an enterprise to deploy mobile enterprise applications and mobile e-mail leveraging the SAP Mobile Workplace," said Howard Beader, director, mySAP Mobile Business, SAP Labs. "This partnership allows us to build on the strength of the complete Compaq organization, from ProLiant servers through various access devices, as well as through Compaq Global Services with their experienced wireless professionals."
mySAP Mobile Business extends the reach of mySAP.com beyond desktop PCs and wirebound networks. mySAP Mobile Business establishes new ways to interact with enterprise systems and empowers new user communities and individuals to participate in collaborative business processes. With mySAP Mobile Business, companies can now deliver unmatched levels of service and support to their employees, customers, and business partners.
Compaq and SAP will work with their large installed base of customers to provide mySAP Mobile Business Solutions through the new pilot, Compaq Mobile Business Starter Solution. The Compaq Mobile Business Starter Solution will be offered to North American customers immediately. The two companies plan to expand these solutions to European customers later this calendar year. For more information on Compaq or SAP, visit compaq.com or sap.com.
Microsoft Announces Public Availability of Mobile Information 2001 Server, Extending the Workplace to Mobile Users
Mobile Network Operators and Other Industry Partners Announce Wireless Services And Products Developed Around Mobile Information Server
ATLANTA, June 18 /PRNewswire/ -- Today at Microsoft Tech-Ed 2001, Paul Flessner, senior vice president of the .NET Enterprise Server Division at Microsoft Corp. (Nasdaq: MSFT - news), announced the public availability of Microsoft® Mobile Information 2001 Server, a mobile applications server that extends Exchange Server information, corporate intranet applications and services to mobile users. Flessner was joined on the podium by Chico Jayanthan, director of Products and Services, Global Platform and Internet Services at Vodafone US, representing Vodafone UK, a participant in Microsoft's Joint Development Program for products based on Microsoft Mobile Information Server (MIS). Earlier today, Vodafone UK announced the commercial availability of corporate wireless services powered by Mobile Information Server. |
