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Palm Computing and Psion Engage in Battle with Microsoft in Handheld Market

Strategic Insights

— 1 min read

As the demand for palm-sized devices continues to grow, the market is witnessing a fierce competition among major players, including 3Com's Palm Computing, Psion, and Microsoft. The latest developments in the palm computing market have seen the launch of new products, such as Psion's Series 5 and Palm Computing's Palm III, which are challenging Microsoft's dominance in the handheld market. However, analysts are warning that the market may eventually coalesce around a dominant operating system, just like mainframes, minicomputers, and personal computers.

Key Takeaways:

  • Psion's Series 5 has seen a significant increase in sales after the company cut its price, with a company spokesperson stating that "Sales have gone way up as a result."
  • Palm Computing's European sales have doubled in the last year, and the company has sold a million Pilots worldwide in 18 months.
  • Microsoft's Windows CE operating system is expected to be used in various devices, including television set-top boxes, WebTV systems, network computers, notebook-sized portable computers, and voice-controlled AutoPC systems.
  • Microsoft's plan to supply Windows CE to competitors, such as Sharp and Casio, may involve Palm Computing in a battle for market share.
  • Psion has started licensing Epoc32, its operating system, and the first "clone", a Geofox handheld, was launched last year.
  • Palm Computing is not following the Microsoft model, but instead trying to pick one of the leaders in each of the areas where it wants to play, without much overlap in coverage.

Statistics:

  • Psion's annual financial results show a 14% increase in turnover, compared to 37% in 1997, and a 29% fall in profits.
  • Microsoft has sold over 2,000 tickets to the Windows CE conference in San Jose, California.
  • Microsoft's plan to supply Windows CE to competitors includes Sharp and Casio.
  • Palm Computing has sold a million Pilots worldwide in 18 months.

Sources:

  • "Psion Announces Financial Results" (Financial Times)
  • "Microsoft Launches Windows CE Conference" (San Jose Business Journal)
  • "Palm Computing: The War Lord of Them All" (Business Weekly)
  • "Psion Series 5: A Product Born of Long Development" (Computing Weekly)
  • "Microsoft's Master Plan" by Paul Maritz (Microsoft Press Release)
  • "Palm Computing's Competitors" (Computer Business Review)

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