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News
Issue #2002 - 32
(August 2002)
(Updated Aug.
21, 2002)
DEVICES
Palm Continues to Lose to Pocket PC in spite of deal with IBM
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Depending on which report you read, Palm and its operating system partners maintain the top position in the number of units sold and the total number of PDAs already in the market. Palm has announced a major message to turn itself from consumer focus to enterprise focus. It has also made available early version of its brand new operating system - Palm OS 5.0 that
iis more functional and supports faster processors. It has earmarked a huge advertising budget (10 million dollars, according to one report) to push its message to the market.
In spite of these valiant efforts, the company's future prospects are being continually questioned. Its stock is at its lowest level. In fact, it has been delisted
by Standards and Poor's in its S&P's 500 index. Even Palm's consumer base is
fleeing - to picture-taking smart phones, MP3 players, and other digital devices. Corporate interest in Palm devices, however, is growing--but Microsoft, with its bevy of enterprise-savvy partners,
is breathing down Pam's neck as a formidable foe. In an effort to go toe-to-toe with Microsoft, Palm is partnering with IBM--it's a deal that looks good on paper, but a lot more has to happen before Palm can claim success with its enterprise focus and continuing to lose its domination of the PDA market.
Source: ZDNet and Jupiter
(acknowledged for part of comments and graphic above) |
MobileInfo Comments and Advisory: With increasing competition in the market, its legacy as a simple PIM organizer and inherent weaknesses of its operating system, Palm's market share had to come down. This is not a surprise to us. In pure numbers, Palm still commands respect and it is seriously working to make its product new challenges - "always on" and enterprise-capable. You can not do this overnight in this difficult market. But you need stronger partnerships with those who are dedicated to your efforts. IBM is too big, not dedicated to Palm strategy and with its own agenda. IBM partnership will help Palm in systems integration and application development where customer has shown a preference for Palm device. Palm needs to woo others as well - Sun, Oracle, EDS and a host of corporate application developers.
Palm should also concentrate in vertical industries like healthcare where application requirements are simple and
healthcare workers like Palm's user interface.
Palm must be realistic in not trying to solve the needs of complex business applications (e.g. public safety) that require
a bigger foot print and more application development muscle on the device.
To the corporate IT professional, we would say - if your application is simple
enough and can be implemented on Palm, go for it. On the other hand, make your device platform choice carefully after analyzing all your application requirements - current and medium term. Day after tomorrow, there may be a different landscape and you may have to redevelop your application anyhow.
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.
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