Pocket PC OEM's

[Janak Parekh]

Earlier this week, I <a href="http://www.pocketpcthoughts.com/forums/viewtopic.php?t=6368&highlight=fic">reported</a> that NEC was contracting FIC to build an XScale Pocket PC for the US. Well, they already have one in Europe - Elisabeth Liddell of FoxPop has a <a href="http://www.foxpop.ndirect.co.uk/roadtesting2/nec/200e_cover.htm">sneak peek of the 200e</a>, which is a low-end, 200MHz XScale device for the European market.<br /><br />Is this going to be the same unit in the United States? It's hard to say so far, as the 200e is actually an evolution of the <a href="http://www.nec-online.co.uk/product/P_Range.asp?id=226">MobilePro 300e</a> - another European NEC brand. This unit is <i>not</i> the same as the <a href="http://www.neccomp.com/products/MobilePro/P300/">MobilePro P300</a> that's received a lukewarm response in the US. Instead, it's a small, relatively low-cost unit (almost as cheap as the Dell Axim), with just one SD slot and a "Rocketeer" expansion module for CF/PC card capability. FoxPop also has a <a href="http://www.foxpop.ndirect.co.uk/roadtesting2/nec/300e_01.htm">review of the 300e</a>.<br /><br />OK, are you confused yet? Good, because the situation gets even more complex. The 300e looks a lot like the Packard Bell <a href="http://www.packardbell.co.uk/products/node1361.asp">PocketGear 2060</a>, and the 200e like the <a href="http://www.packardbell.co.uk/products/node1351.asp">PocketGear 2030</a>. That makes sense, since NEC bought out the Packard Bell brand years ago. However, Christian Torring reports in a <a href="http://www.pocketpcthoughts.com/forums/viewtopic.php?p=53793">post</a> on our very forums that the PocketGear seems to be identical to two <i>other</i> OEM brands in Europe: the Mitac and Medion units, and he's got the <a href="http://www.pocketpcthoughts.com/forums/viewtopic.php?p=53793">pictures</a> to demonstrate it.<br /><br />Oh, and by the way, FIC, who's manufacturing the mysterious US XScale units, has a Pocket PC <a href="http://www.fic.com.tw/product/pda/pocketpc.html">model of their own</a>, with Bluetooth and integrated WLAN models. I tried to find out who manufactures the 200e and 300e, but I haven't had any luck.<br /><br />What does this all mean? I don't know, my head hurts too much now ;) I have a few observations, however:<li> A broader array of "manufacturers" are seeing the Pocket PC platform as a profitable entity;<br /><li> The OEM market for Pocket PC's is exploding. We're almost starting to see the "clone" market that used to dominate the PC industry in the '80s;<br /><li> Microsoft might see something in all this, as Peter Foot reports they've <a href="http://www.rcrnews.com/cgi-bin/news.pl?newsId=6430">bought</a> the Intrinsyc reference platform we reported on here <a href="http://www.pocketpcthoughts.com/forums/viewtopic.php?t=6111">a week ago</a>. Incidentally, cbunseng reports that you can have a copy of this reference platform for a cool $2,995.

[heov]

did you know the 200e also only has 36MB of usable ram (just like the ViewSonic)... i'm getting suspicious ;)

[Janak Parekh]

did you know the 200e also only has 36MB of usable ram (just like the ViewSonic)... i'm getting suspicious ;)
It's a conspiracy! A conspiracy, I tell you! :D

Seriously, you're right, it does look like the Viewsonic is made by a similar OEM - the LED's are in the same position - just the screen and the processor are different.

--janak

[Foo Fighter]

I'm not so sure this broad array of PPC licensees is a good thing. The PDA market is still too small to support so many players. That plus the shear installed base of the PalmOS platform makes it extremely difficult for new...or established PPC OEMs to carve out significant marketshare. The new primary weapon being utilized in this war is price. Low prices may finally open the door for mass adoption of PPC devices. By offering low-priced hardware, licensees are hoping to make up the loss in margins by increased volumes. But look at the current landscape. HP is largest among all PPC licensees with roughly 12% US marketshare. Toshiba has around 6%. Now you add Dell to the mix, and HP & Toshiba will most certainly lose some of their already small share of the pie chart. And therein lies the problem. Dell could do more damage to other PPC licensees than PalmOS. I'm afraid Dell may eventually force some PPC players out of the market. Will that help Pocket PC's marketshare, or hurt it?

It's the classic argument in quality vs. quantity. PPC doesn't need dozens of licensees with weak share, it needs only a handful with strong market presence. We could see a repeat of Apple's problems when they began opening the Macintosh platform up to new hardware vendors. Instead of growing MacOS marketshare, licensees such as Motorola and UMAX simply stole share away from Apple. Prices came down, hardware became more competitive, but the Macintosh platform didn't get any bigger.

In my opinion, what PPC needs right now is better marketing. Microsoft has done a miserable job of promoting the platform...especially to consumers. We now have an incredibly low-priced PPC, but Dell isn't even advertising it. Where are the TV spots featuring the Axim? How are consumers even going to know this device exists? Word of mouth? That's not going to grow share. And how about Microsoft release a badly needed upgrade for PPC that fixes all the quirks, gives the UI a makeover, and keeps excitement alive and momentum going. PPC2002 is looking rather stale.

PPC faces an uphill battle in 2003. Let's hope everyone involved finally gets their strategies worked out, and coordinated.

[ux4484]

hmmm.......as I understood it Packard Bell bought NEC (just before leaving the US PC market), and though they retained NEC name and much management for much of NEC mfg, the computer hardware stuff is managed by mostly Packard Bell yo-yo's. For work I recently recieved a overseas shipment including a PB workstation (of typical PB quality) which I promply sent back after it's CPU fan failed and overheated a week after installation.
I could only hope that no PB mfg or exec's are involved the PPC project, or they will be doomed to fail.

Foo,

I did catch a dubbed-in line for Dell's PDA in a recent Dell "Intern" spot......right at the end, a obvious tack on which doesn not mention it's OS. I think the interns are almost as annoying as Steven.

[Janak Parekh]

We could see a repeat of Apple's problems when they began opening the Macintosh platform up to new hardware vendors. Instead of growing MacOS marketshare, licensees such as Motorola and UMAX simply stole share away from Apple.
This doesn't quite apply in my opinion. Apple/Palm are (was in Palm's case?) hardware+software companies; Microsoft is not, so it's not like they're stealing shares of Microsoft hardware away. It's not clear whether "dilution" will kill the big players -- if anything, overpricing will kill HP's product before anything else, as they already have the brand name, the product line, store presence, etc. The little players are far more at risk as they build undifferentiated products. If you looked at the clone market of the '80's, they didn't kill IBM's marketshare - their proprietary, overpriced PS/2 architecture did.

I do agree largely on the marketing bit. Ed's article on Saturday illustrates how the perceptions of a Pocket PC being too "complex" and "expensive" are still pervasive in the market.

--janak

[Janak Parekh]

I could only hope that no PB mfg or exec's are involved the PPC project, or they will be doomed to fail.
It was quite the "in" joke when NEC bought out the Packard Bell brand some 6-odd years ago. One mediocre brand name (excepting displays) buying out the mediocre brand name? :D

In any case, Packard Bell didn't hurt the adoption of PC's hugely. If their PPC's are lame, I don't think it'll hurt PPC's in general. Witness the P300: while it got poor reviews, I don't think it particularly impacted the iPaq's sales. NEC has been pushed to a minor niche player in the PC (and PPC) market, at least in North America.

--janak

[JonnoB]

hmmm.......as I understood it Packard Bell bought NEC (just before leaving the US PC market), and though they retained NEC name and much management for much of NEC mfg, the computer hardware stuff is managed by mostly Packard Bell yo-yo's.

NEC (the big Japanese company) bought Packard Bell (the languishing US based company) years ago and pretty much did most consumer a favor by helping Packard Bell to the grave in the US. NEC is still strong in Japan and abroad in other technologies. I am not sure that Packard Bell got the bad name in Europe as it did in the US... perhaps that is why we still see it there.

[ux4484]

To be more specific; Packard Bell purchased the NEC PC unit in late '97 to then be swallowed by NEC in late '98 (Business week Aug '98 issue) as a whole. While many of the NEC/PB US employees were laid off in '99 (cnet Nov '99) much of the upper management level staff was retained and is gainfully employed in the European unit today.
I've had a handfull of PB European machines over the last few years, none were worth writing home about (see previous post). NEC should AT LEAST seriously consider NOT using the PB name on PDA's licenced here in the US.

[The Big Jay]

did you know the 200e also only has 36MB of usable ram (just like the ViewSonic)... i'm getting suspicious ;)

You're probably right and this thing probably has NAND Flash ROM.

That being said, why don't PPC manufacturers include 128MB of RAM on their devices?

[Roosterman]

Dell could do more damage to other PPC licensees than PalmOS. I'm afraid Dell may eventually force some PPC players out of the market. Will that help Pocket PC's marketshare, or hurt it?

Foo, It almost seems that you are assuming the pie is only so big so each new company will only take part of another companies piece. IMHO, the pie is only starting to grow. I for one just bought a Dell because the price was finally at a point that I could personally justify. By bringing the price down to a level in reach by many more people, not to mention companies, increases the size of the pie.

Your point about promoting the platform is very valid. If I didn't work in IT, I probably wouldn't have know about it or really cared. I wouldn't be too hard on Dell yet. It has only been about a month for them to be in this market. I really don't think they expected the kind of response that they got for the X5. I have started to see it in print ads for them. Give them a little time and I think they will get the pie really growing :) .

[Foo Fighter]

Foo, It almost seems that you are assuming the pie is only so big so each new company will only take part of another companies piece. IMHO, the pie is only starting to grow.

PDA sales have been shrinking, overall. The PDA market is still extremely small, and mobile devices still have a very low adoption rate. Especially compared to the mobile phone market. Cell phone sales have hit the 1 billion mark already. Where are PDAs at? 30 million sold? That's nothing.

And to make matters worse, cell phones are getting the jump on PDAs. Smartphones/Communicators may end up killing the PDA as we know it.

[JonnoB]

And to make matters worse, cell phones are getting the jump on PDAs. Smartphones/Communicators may end up killing the PDA as we know it.

PDA and Phone: Seperate uses and markets. As much as I like the idea of integrated devices, they are distinctly different. I can't see a good phone being a good PDA or vice versa. The SmartPhone/Pocket PC hedging MS is doing is smart. If anything, MS should be getting much more aggressive on the phone front and look perhaps to its hardware division to help motivate the market and build a MS phone hardware.

PDAs are not as versatile or important as phones and I doubt the phone form factor will ever be as good as a PDA for data access. There will always be two markets and the phone will always eclipse the PDA by a wide margin.

[Maximo]

What model HP is that on the left in the picture at "sneak peek of the 200e"? Is it a PPC?

Thanks,

-Maximo

[JonnoB]

What model HP is that on the left in the picture at "sneak peek of the 200e"? Is it a PPC?

Thanks,

-Maximo

That is a standard HP 56x series Pocket PC with the optional thumb keyboard add-on that replaces the flip screen.