November 11, 2002
(Computerworld)
Dell Computer Corp. plans to introduce a low-priced Pocket PC handheld computer at next week's Comdex/Fall 2002 trade show in Las Vegas as part of a bid to extend its reach into the corporate IT market.
Analysts said Dell's entry into the handheld market is also designed to put added pressure on Hewlett-Packard Co. HP has been selling devices based on Microsoft Corp.'s Pocket PC operating system since early 2000 and currently offers iPaq devices developed by Compaq Computer Corp., which HP acquired in May.
Dell offered a teaser introduction to its Axim X5 handheld on its Web site last week. The vendor declined to disclose pricing, except to say that the device would be sold at "unheard-of low prices."
Sam Bhavnani, an analyst at ARS Inc. in La Jolla, Calif., predicted that Dell will sell a low-end version of the Axim X5 with Intel Corp.'s 300-MHz StrongArm processor and 32MB of memory for $199. A higher-end model with a 400-MHz processor and 64MB of memory is expected to be priced at $299, he added.
Bhavnani said Dell has contracted with Wistron Corp., a subsidiary of Acer Inc. in Taipei, Taiwan, to manufacture the Axim X5. Wistron already makes the Cassiopeia line of Pocket PCs for Tokyo-based Casio Computer Co. Dell didn't return calls seeking comment.
The prices Dell is expected to charge are well below the $500 to $700 price range of HP's iPaq line. HP plans to introduce new iPaq models at Comdex, but a spokesman declined to comment on the pricing plan for the devices.
Alex Slawsby, an analyst at IDC in Framingham, Mass., said Dell took notice of the success HP has had with iPaq among corporate users and decided that it needed a handheld of its own to round out its hardware line.
But the low price of the Axim X5 won't matter for many corporate IT buyers, Slawsby said. He predicted that Dell will "throw in the handhelds as a deal closer" on sales involving its servers and PCs.
Bhavnani said Dell is attempting to commoditize yet another slice of the computer market. But, he added, "there is a lot of room for innovation in this market," pointing to the new Tungsten devices that Milpitas, Calif.-based Palm Inc. announced last month .
Palm, which uses its own operating system, also sells the $99 entry-level Zire device. For that reason, Bhavnani said he doesn't expect Dell's entrance to put as much pressure on Palm as it does on other Pocket PC vendors.
PRICING
Handheld PCs
Palm Zire:
$99
Dell Axim:
$199-$299*
HP iPaq:
$500-$700
Palm Tungsten T:
$499
*Based on analysts’ predictions