Handheld Computing Devices to Match PC Sales Volumes

Strategic Insights -

Bill Gates, Microsoft's chairman, envisions a future where handheld computing devices sell in the same volumes as personal computers. Speaking to a banking trade association, Gates emphasized the potential of these devices, despite the current market limitations. The data shows that while 80 million personal computers are sold worldwide each year, handheld versions have only managed to reach a market of around 4 million units.

Key Takeaways:

  • Handheld computing devices are expected to match the sales volumes of personal computers, according to Microsoft chairman Bill Gates.
  • The current market for handheld computers is limited to around 4 million units, compared to the 80 million personal computers sold worldwide each year.
  • Apple Computer has stopped development of its Newton platform, a five-year-old product, indicating the challenges in the handheld market.
  • Microsoft has launched a second version of its Windows CE operating system for palmtop computers to compete with the Palm Pilot from 3Com Corp.
  • The new Windows-based handheld PCs are smaller and more compact than previous versions.
  • Microsoft has incorporated the concept of a digital wallet into its Internet Explorer browser, enabling electronic transactions.
  • Broader acceptance of encrypted "smart cards" will increase security and drive more electronic commerce.
  • Bill Gates anticipates that forthcoming versions of Microsoft's software will include this technology.
  • The market for handheld computers has been difficult for the electronics industry to penetrate.

Statistics:

  • 80 million personal computers sold worldwide each year (Gates' statement)
  • 4 million handheld computers sold worldwide each year (Gates' statement)
  • 80/4 = 20:1 ratio of personal computer sales to handheld computer sales
  • 5 years: duration of Apple's Newton platform development (source: Apple's statement)
  • 2 versions: number of Windows CE operating systems for palmtop computers released by Microsoft

Sources:

  • Baptiste, 1996, Bill Gates, December 18 (arrival date not specified in the text)
  • Gates, B. (no date specified), Speech to banking trade association (no date specified in the text)
  • Microsoft (no date specified), Windows CE operating system (no date specified in the text)
  • Apple Computer (no date specified), Discontinuation of Newton platform (no date specified in the text)