Computer show features myriad handheld devices
Reuters, Wednesday, November 19, 1997 at 21:57
By Therese Poletti
LAS VEGAS, Nov 19 (Reuters) - A myriad of small, handheld
computers and devices proliferated at the Comdex computer show
this week, but analysts and executives predicted consumer
confusion and chaos over competing products.
SOME OF THE BIGGEST CROWDS WERE AROUND 3COM CORP.'S
(NASDAQ:COMS) BOOTH, WHICH FEATURED THE PALM COMPUTING UNIT THAT
DEVELOPS THE HOT-SELLING PALMPILOT.
Also crowded was Microsoft
Corp.'s (NASDAQ:MSFT) area focused on Windows CE, where at least 20
devices running its newest version of its operating system for
handheld computers were on display.
Handheld devices vary in many ways, but, in general,
standard handheld devices are small, personal organizers that
typically can fit into a shirt pocket, and can store a
schedule, addresses and phone numbers, a calculator and can
handle electronic mail.
The PalmPilot, with 66 percent of the standard handheld
market in the first half of 1997, has surged ahead in a market
where Microsoft is a laggard. Handheld PCs based around
Microsoft's Windows CE software held 20 percent of the market
in the first half of 1997, according to market researcher
Dataquest Inc.
The PalmPilot runs its own software, called the Pilot
operating system, and costs $249 to $369, depending on the
model. It has its own applications, such as expense report
software, and hundreds of software developers are looking at
developing applications for the Palm Pilot.
While the PalmPilot is clearly the leader, a new crop of
Windows CE devices are coming out, based on Microsoft's Windows
CE Version 2.0 software. Compaq Computer Corp. (NYSE:CPQ)
announced its PC Companion this week at Comdex, but the device
will not ship until the first half of 1998.
Most Windows CE devices for now are more expensive than the
Pilot, such as Hewlett-Packard Co.'s (NYSE:HWP) HP360LX, which has
a street price of around $699. Compaq said it will announce
pricing when it ships the PC Companion.
So far, the Pilot has swayed users because of its
relatively low cost, small size, simplicity -- and handwriting
recognition that works. Users learn the "graffiti" handwriting
recognition system, which is like printing characters, and can
enter data such as contact information and appointments. The
other devices, however, offer miniature keyboards and a stylus
to point and click instead of using a mouse.
Another popular handheld at Comdex was the Psion Series 5,
developed by Psion Plc.(ISEL:PON) of Britain., which announced a
series of new software titles and said its sales had reached
40,000 units a month worldwide. The Psion device also uses its
own operating system, called the EPOC32, developed for mobile
use.
However, analysts said Microsoft is not standing still.
"Microsoft has said they will take (Windows) CE in many
different directions," Mike McGuire, a senior industry analyst
at Dataquest said. He said it is likely Microsoft will develop
another version of the operating system that will directly
attack the PalmPilot.
"There are a number of vendors looking at that market,"
McGuire added. "The Psion is an excellent piece of technology.
The thing the Psion faces, as does the Pilot, is, is that
(technology) enough to go against the marketing juggernaut that
is Microsoft? It's a challenge and it's one that will be a very
interesting fight."
International Business Machines Corp.(NYSE:IBM) -- which is
marketing the PalmPilot in a deal with 3Com, with its own
specialized software aimed at specific industries -- is waiting
to see how the market plays out before it develops its own
handhelds, especially after their spotty history in the
computer industry, ranging from the EO to Apple Computer Inc.'s
(NASDAQ:AAPL) Newton.
"We are in chaotic exploration of the right idea," said
James Firestone, general manager of IBM's consumer division.
"It's technology-driven, not market-driven. IBM is watching."
Copyright 1997, Reuters News Service |
