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Microsoft's Mobile Devices Strategy: A Battle for Supremacy in the PDA Market

Strategic Insights

— 2 min read

The mobile device market, once dominated by desktop PCs, is now open to fierce competition, with Microsoft's CE operating system facing opposition from PalmPilot and other rivals. Phil Holden, a group product manager at Microsoft, sees an opportunity for his company to tap into the market with its CE operating system, which will run on a variety of mobile devices, including set-top boxes and hand-held computers.

As the PDA market evolves, suppliers are continuously redefining the product definition, making each device a very personal tool. Complex software such as CE is now being used on devices not traditionally associated with the computer industry, further blurring the lines between personal and business use. Mr. Holden's Casio E100 PDA, for example, is used not only for business purposes but also for personal activities such as listening to music and storing photos.

Despite the competition, Microsoft remains confident in its CE operating system, which offers a software platform that fits the life of stressed people. The company's focus is on developing software that allows users to do more than just manage diaries and address books. Microsoft's products, such as the Casio E100, are designed to integrate with desktop PCs, allowing users to access familiar Windows displays on the go.

However, rival companies are not giving up easily. IBM, for instance, is launching a new range of CE devices in its WorkPad family, with a mini-notebook PC that offers 95% of normal keyboard size and eight hours of battery life. Psion, a UK-based hand-held computing company, is also entering the market with its Enterprise range, which will offer compatibility with Sun Microcomputer's Java software. The Symbian consortium, of which Psion holds a 31% stake, is working to take Psion's Epoc operating system and exploit new functions on mobile phones.

Key Takeaways:

  • Microsoft's CE operating system is poised to run on a variety of mobile devices, including set-top boxes and hand-held computers.
  • The PDA market is constantly evolving, with suppliers continuously redefining the product definition to make each device a very personal tool.
  • Complex software such as CE is now being used on devices not traditionally associated with the computer industry, further blurring the lines between personal and business use.
  • Microsoft's CE operating system offers a software platform that fits the life of stressed people, allowing users to do more than just manage diaries and address books.
  • Rival companies such as IBM and Psion are entering the market with new products, including a mini-notebook PC and the Enterprise range.
  • The Symbian consortium is working to take Psion's Epoc operating system and exploit new functions on mobile phones.

Statistics:

  • Microsoft's CE operating system will run on up to 5m set-top boxes intended to integrate TV and internet services in the US.
  • The PDA market is expected to grow as small operating systems endow mobile phones and PDAs with more power.
  • Microsoft's productivity appliances division employs 1,000 out of the company's 32,000-strong workforce.
  • The WorkPad Z50, a mini-notebook PC, will offer 95% of normal keyboard size and eight hours of battery life.
  • The Enterprise range from Psion will offer compatibility with Sun Microcomputer's Java software.

Sources:

  • Financial Times Limited, 1999.

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