News
Issue #2002 - 39 (October 2002)
(Updated Oct. 15, 2002)

DEVICES

Dell Confirms Its Handheld Strategy

According to a document posted on PDAFrance, a French site for handheld enthusiasts, Dell is planning handhelds running Microsoft's PocketPC 2002 operating system and powered by Intel's XScale processor. The document includes several images of Dell's planned device and mentions other features, including Secure Digital and Compact Flash expansion slots, a 3.5-inch transflective TFT screen and a jog dial.

Dell's spokesperson Jess Blackburn confirmed the documents were from Dell but cautioned that the specifications may not be final. Blackburn said the company does not know how the documents made their way onto the Internet. Sony had a similar issue last month, when a document made its way onto the Internet detailing two unannounced Clie handhelds.

Dell has said it plans to enter the handheld market but has not revealed the pricing or features of its products. Blackburn said Dell had previously committed to launching a handheld in the fourth quarter. "That is still our plan," he said. Analysts have said Dell is aiming to have models start at $299. ViewSonic recently announced a Pocket PC-based handheld at that price, which represents a drop in the entry point for devices running the latest version of Microsoft's handheld OS.

"When we got into software for handhelds, we made a bet that component costs would come down, and while it was initially an obstacle, we're now able to attack the low and midlevel price ranges," Microsoft spokesman Ed Suwanjindar said last month. Hewlett-Packard also plans two new Pocket PC-based handhelds for the holidays, including a lower priced iPaq. The new device has the same brushed-metal case as earlier iPaqs but is visibly smaller. 

For more information: www.dell.com

MobileInfo Comments and Advisory:  It does not matter how the news leaked - perhaps it was Dell who fed this. It is not unusual for vendors to do that. Dull market conditions and Dell's entry will knock about $100 off the price of a typical PDA during the next 6 months, we think. This is good news for the enterprise - bad news for Palm and HP. But device vendors better become highly efficient, face planned or forced industry rationalization. We expect Palm, HP, Dell and couple of other PDA vendors (too hard to guess) to survive in the general-purpose PDA arena. Symbol will hold on to its niche market. Our bet is off in two to three years. It will also increase penetration of PDAs in the enterprise - Dell's main market.

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