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News
Issue #2001 - 35 (August 2001)
(Updated August 29, 2001)

DEVICES

Special Promotions to Ignite the Handheld Market

To ignite a spark in the smoldering handheld market, manufacturers are launching special promotions in order to move excessive inventory.

Recently, Handspring, Inc., manufacturer of the popular Visor handhelds, and Compaq, known for its iPAQ handheld PocketPCs, have launched promotional campaigns to move their respective products.

Handspring has taken the traditional approach of slashing prices to attract the back-to-school crowd, students and teachers alike. The Mountain View, California-based company announced price reductions off its popular Visor handhelds, discounts range from $20.00 off the 2MB Visor to $100.00 off the Visor Edge.

Compaq and Cathay Pacific Airways have launched a dual promotional campaign. From September 1st through to November 15th, travelers purchasing a round trip business- or first- class ticket from Los Angeles, San Francisco, New York, Toronto or Vancouver and Hong Kong on Cathay Pacific Airlines will receive a Compaq PocketPC handheld.

"With an increased popularity mobile computing, we believe this promotion will encourage our passengers to book a premium-class seat to Hong Kong so that they can experience easy access to the Internet, content, and information whenever their business or leisure travel takes them abroad," says Tom Wright, Cathay Pacific’s senior vice president.

The airline anticipates that more than 2,000 premium airline passengers will take advantage of the offer.

For more information: http://www.handspring.com http://www.compaq.com

Mobileinfo Comments and Advisory: Handheld PDA and smart phone prices are coming down and putting pressure on profit margins of device manufacturers. Low-end devices will soon become commodity products. The manufacturers will have to increase their volumes when economy picks up or get into services area. However, we also need more functional (and justifiably more expensive) versions of these devices for the enterprise applications. We should remind enterprise device evaluators to keep in mind that device hardware price is only a small portion of the total cost of operation (not ownership - not TCO but our term TOO that includes network cost, application development cost, and more). Please do not "nickel and dime" over device prices when it comes to the enterprise. It might make a difference between mobile workers using it productively or only when it is absolutely essential  - the latter mode is not desirable.

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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