HP: Pen-based PDA market on death bed

By Asher Moses on 02 March 2006

HP iPaq rw6800

According to Hewlett-Packard (HP), the traditional pen-based PDA market will evaporate within the next four years without significant product innovation. The company will therefore continue to focus the majority of its handheld efforts on converged smart phone devices, relegating its traditional PDAs to the entry-level consumer and SMB markets.

At its "magical mobility launch" event in Hong Kong this week, HP's Vice-President for Consumer Products and Mobile Business Group in the Asia-Pacific region, Chin-Teik SEE, told CNET.com.au that "the pen-based [handheld market] is shrinking at a rate of 30 percent year-on-year."

"There's still a market... it's small, but it's still there," Chin-Teik said, citing "entry-level PDA" buyers and SMBs as the primary sources of demand for the sector.

"We are still committed to the pen-based classic PDA product segment... although it's not growing," said Chin-Teik, and as a result HP "is looking more to the converged space" going forward.

This won't come as a surprise to many, as HP hasn't given its traditional pen-based product line a refresh since the launch of the iPAQ hx4700 towards the middle of 2004. It released the iPAQ rx1950 in September of last year, but this was very much an entry-level product and made few waves among the high-end, tech-savvy consumers that dominate the PDA segment.

At the other end of the PDA spectrum, HP continues to add to its rapidly expanding smart phone lineup. At the launch event this week the company added two new products to this range, the iPAQ rw6800 and the iPAQ hw6900. Both are based on the Windows Mobile 5.0 operating system and both offer push-email capabilities -- a direct move into the BlackBerry's territory -- however, the former is being marketed as a portable entertainment device while the latter is more data-oriented. Some of the standout multimedia features on the rw6800 include a built-in 2.0 mega-pixel camera, FM tuner, MP3 playback software and dual stereo speakers.

According to Chin-Teik, HP will continue to look for ways to "redefine the [pen-based PDA] category," but it's safe to say that smart phones will be the company's primary focus -- as far as handhelds are concerned -- for the foreseeable future.

CNET.com.au's Asher Moses travelled to Hong Kong as a guest of HP.

Topics: pda, hp, pen, ipaq, market, base, product, hong kong, smb, consumer

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Comments (10)

  • B Beaumont commented on 22/04/2006 18:02 Report abuse

    The Clie was fantastic and compact. I have just bought a Jasjar because it was the closest thing to the Clie. It is just too bulky and heavy and the Windows is so clunky comared to the Palm OS

  • onirgOINRGOINDFGIOHN commented on 05/03/2006 05:50 Report abuse

    Im suprised theyve lasted so long anyway. Proper computers have keyboards. I was well into PDAs, any one remember the Psion 3a or series 5? they pissed on PalmPilots back in the day. Then all you started to see was PalmPilot clones. I always thought stylus interaction was a total gimmick.

  • setec astronomy commented on 04/03/2006 13:19 Report abuse

    It sucks to look like I have a Batman utility belt (cell phone, pda, pager) but depending on the environment I may be allowed to use one, two, or all of the above. In some environments no PDAs are allowed that are audio/video recording capable or have any type of wireless (e.g., cell, wifi, bluetooth) ability, this is not good news.

  • Anoynomus commented on 04/03/2006 12:42 Report abuse

    Yea its a good thing Dell is way better than HP with their Axim line. All upset over this switch to a Dell Axim, way better, more features, plus very affordable.

  • Mel commented on 04/03/2006 05:22 Report abuse

    I'd rather put my money into a very effective PDA than a fancy phone that I can't use for data while I'm talking on it. I go through about a cell phone a year. The screens quit, etc. Plus, I need a tiny cell phone to fit in my pocket, which the smart phones won't. HP never did figure out that most consumers weren't interested in their all-in-one printers, and now they're going to force feed us AIO phones. Nevermind that I'm a Mac devotee, so if it doesn't sync with my Powerbook, I don't want it.

  • ks32 commented on 04/03/2006 04:38 Report abuse

    I got k-jam and only bad thing about this windows mobile phone is its stylus!

  • none commented on 04/03/2006 03:50 Report abuse

    This would be a fine thing, except the problem isn't the stylus-based PDA so much as the product line up. If the pocket computing devices could provide the capabilities of a laptop, I think more people would buy them. The trouble with the PDA-phones is that you don't want your phone crashing - or sometimes you want to be doing something else while you are talking on the telephone - but still have use of the phone. The Palm Lifedrive has a great deal of storage and could replace a PC, except for the unstable operating system. There don't appear to be any similar devices in the IPAQ lineup - although several IPAQ's have much higher resolution displays. If I could replace my laptop/desktop with an Lifedrive or IPAQ sized device I would jump on it.

  • solak commented on 04/03/2006 03:48 Report abuse

    I say that my Newton 2100 is getting really long in the tooth, but still no one has made a better device for my needs. (For me, the handwriting recognition works, and I do not want to give that up). Palm started to get there but now they are loading WinCE on most of their systems. When will I be able to buy an off-the-shelf system that integrates HWR, notes, names, calendar, et cetera, plus has a software and hardware architecture that allows third party extensions to not merely run on it, but actually integrate and enhance the built-in applications? Can I get a pocket Macintosh next year? Please?

  • davelog commented on 04/03/2006 03:04 Report abuse

    You can have my stylus when you pry it from my cold, dead hands.

  • Airogos commented on 04/03/2006 02:59 Report abuse

    This is absolutely awful. I've been a loyal stylus based Pocket PC user since Cassiopeia. This is even more disheartening when the 5555 was stopped and the new models didn't accept the sleeves that fit all the previous iPaqs. The smartphones don't compare to a pda. Plus, I don't want to have to pay a fortune in monthly fees to use my PDA - they're expensive enough. I hope Microsoft's Origami project will offer salvation to this dilemma. Damn the HP-Compaq merge.

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