To: Night Writer who wrote (331 ) 5/10/2002 4:28:40 PM From: Night Writer Read Replies (1) | Respond to of 4345 Hewlett-Packard Line Weighs Intel, Texas Instruments to Supply Chips May 10, 2002 (The Dallas Morning News - Knight Ridder/Tribune Business News via COMTEX) -- Texas Instruments Inc. is scuffling with Intel Corp. over which company will supply chips for post-merger Hewlett-Packard Co.'s wireless handheld computers. H-P intended to use the TI system in its planned Jornada 920 handheld, the first Jornada to also function as a cellphone. But after closing its acquisition of Compaq Computer Corp., H-P said Tuesday that it plans to phase out the Jornada line this year and replace it with Compaq's iPaq device, using some of Jornada's technology. Now H-P has to decide whether to sell the Jornada 920 at all and whether to use TI chips in future wireless handhelds. "We should know better within the next couple of weeks whether or not the product will go to market," H-P spokeswoman Sherry Brit said. "I'm not quite sure whether or not our new H-P iPaqs will be using TI chips." Computer companies such as Compaq and H-P have traditionally used Intel's chips in handheld computers. But when handheld makers started incorporating cellphones into their computers last year, some switched to TI's chip system because it was designed for voice and high-speed data transmission. Intel is making its own push into the wireless handheld market. Compaq said last year that its upcoming wireless devices would support Intel's technical standards. But some analysts think TI has a better chance of winning a place in a wireless iPaq. "TI has made enough major manufacturers happy with their product to at least allow them a foot in the door," said Marc Zabicki of H&R Block Financial Advisors. "Intel's name alone is going to allow them some recognition, but whether it can unseat TI remains to be seen." TI's experience in the wireless world may give it an advantage over Intel, which is relatively new to the industry, said Frost Securities analyst Cody Acree. H-P hasn't been in the wireless industry long either, and Mr. Acree says the company may want a partner with a more extensive history. "The tendency is always going to be to lean on the competency of the vendor," he said. "TI offers the most support." By Crayton Harrison To see more of The Dallas Morning News, or to subscribe to the newspaper, go to dallasnews.com . (c) 2002, The Dallas Morning News. Distributed by Knight Ridder/Tribune Busines News.