Compaq Challenges Palm with Wireless Hand-Held Device Based on Microsoft Outlook

Strategic Insights -

Compaq, the world's largest PC maker, is poised to announce a pocket-sized wireless hand-held device based on Microsoft's popular Outlook scheduling and messaging software. This move marks a significant push by Compaq to develop a family of portable hand-held computer products, some of which will be announced this week under the iPaq brand. The Compaq device, running on a compact version of Outlook and the BlackBerry operating system, is set to rival Palm's market leadership.

Key Takeaways:

  • Compaq is set to announce a wireless hand-held device based on Microsoft Outlook, challenging Palm's market leadership.
  • The Compaq device will run a compact version of Outlook and use the BlackBerry operating system from Research in Motion.
  • The choice of the BlackBerry operating system is a blow to Microsoft, which is trying to establish variants of its Windows operating system in hand-held computer devices.
  • Compaq's push into portable hand-held computer products will include an MP3 digital music player and other devices to be announced under the iPaq brand.
  • The Compaq device uses an Intel compatible 386 microprocessor and is clearly aimed at the business user.
  • Microsoft is treading cautiously in the hand-held market, with its PocketPC version of Windows CE yet to establish a dominant market position.
  • Zona Research and other market analysts predict that hand-held computer devices and mobile phones will soon outnumber PCs as the main internet access platforms.
  • Palm holds about 70% of the market, according to International Data Corporation.

Statistics:

  • Compaq's move into hand-held devices and portable products aims to generate revenues beyond the maturing PC market.
  • The Compaq device will run on a compact version of Outlook, which is used by tens of millions of people.
  • Compaq's iPaq brand device will compete with Palm's family of Palm hand-held devices.
  • Approximately 70% of the hand-held device market is currently held by Palm (International Data Corporation).
  • Research in Motion's BlackBerry operating system will power the Compaq device (Research in Motion, a Canada-based company).

Sources:

  • Microsoft (no specific date mentioned)
  • Research in Motion (no specific date mentioned)
  • Compaq (no specific date mentioned)
  • International Data Corporation (no specific date mentioned)
  • Zona Research (no specific date mentioned)