News
Issue #2001 - 26 (June 2001)
(Updated June 27,  2001)

DEVICES 

Compaq Gains Ground on Palm for Handheld Revenue, says study

Compaq Computer knocks Palm, Inc. from No.1 position in the high-end handheld market, according to research firm Gartner Group. Based on total revenue share, analysts foresee Compaq generating revenues of better than $200-million from its iPAQ handheld computer during the second-quarter, while Palm will only garner revenues of $130-million to $135-million during the fourth-quarter. 

Gartner's projections only add to the list of recent setbacks for the company whose name has become synonymous with PDAs; a fall in consumer demand, slow production rap-up of new models, excessive inventory are cited by analysts as contributing to Palm's fall from top place. 

While Palm continues to feel the heat, Compaq is slowly reaping the benefits from the interest among the corporate crowd for devices running on Microsoft's Windows CE, says Gartner. Despite its high price, the Compaq iPAQ's color interface, greater messaging capabilities, and smoother functioning with Outlook and Office applications have enticed some enterprises to either consider or make large volume purchases of the device. However, Compaq has had difficulty in the short-term meeting the demand, says Gartner. 

According to the Connecticut-based research firm, for Compaq to hold on to the number one position, the company "must continue to improve industrial design as other Pocket PC devices introduce similar screen technology to Compaq's. Compaq must correct some product anomalies, such as its pen design and a loss of data when the battery is drained."

It appears that Compaq will not rest on its laurels. Michael Capellas, Compaq's chairman and CEO, recently showcased the first tri-band GPRS expansion pack for the Compaq iPAQ. Developed in conjunction with the Belgium company Option, the product integrates tri-band GPRS, GSM, and SMS into the handheld computer. 

"By adding GSM and the GPRS capabilities, the iPAQ handheld will be the most versatile handheld computer on the market," remarked Jan Callewaert, president and CEO of Option. "iPAQ users will be able to browse the Internet, and manage e-mail wirelessly, send and receive SMS messages, and have full mobile phone capabilities."

Even though Compaq appears to currently have the upper hand, Gartner is not discounting Palm. In the report, 'Palm's Grip Tested in Handheld Market,' Gartner says, " Palm remains a solid choice for enterprise use. However, users should not commit to any vendor beyond two years, at which time they should evaluate Palm devices against competitive offerings. "

For more information: http://www4.gartner.com/Init

Mobileinfo Comments and Advisory: 

Note: This news release may contain forward-looking statements. Readers should take appropriate caution in developing plans utilizing these products, services and technology architectures.  All trademarks used in this summary are the property of their respective owners.