Look out notebooks! Use of handheld PCs to rise
By Staff -- Purchasing, 5/20/1999
As the work force becomes increasingly more mobile, corporate PC buyers can expect to see a corresponding rise in demand from end users for portable computer devices.And demand growth is not limited to notebook PCs, says Fran Firth, senior analyst with Cahners In-Stat Group, Newton, Mass. End users are finding that growing functionality of such handheld PCs as 3Com's PalmPilot is meeting many of their requirements for portable computer devices.
No longer used primarily as address books or planners, handheld PCs have more functionality than ever. Of models now being offered, some are based on the Windows CE operating system, have capability to run word processing and e-mail software, and have computer connectivity.
Handheld PCs increasingly are seen as a solution to help make workers more productive--not just chief executives, but field workers as well, says Firth.
What's more, handheld PCs are less costly than notebooks--good news for corporate buyers. "It's possible for a purchasing manager to equip more mobile workers with PCs without spending more money," says Firth. Prices of the devices run the gamut: Generally priced at less than $1,000, some handheld PCs now are selling for as little as $199.
Usage of all portable computing devices within corporations has skyrocketed over the past several years and will continue to escalate over the next two years, affirms new research from In-Stat Group. Of organizations with employees who use notebook computers, for instance, a large increase in usage is expected by the turn of the century.
In-Stat Group's five-year forecast for notebook PCs shows continued strong growth over the next five years. Overall worldwide notebook PC shipments are projected to grow by 18.7% annually during this time period.
Now notebooks are commonly purchased as replacements to desktop systems due to numerous factors, including:
* Increased mobility of today's work force.
* Sharp decline in the cost of notebooks.
* Increasing power and functionality of notebooks to the point where they rival--and in some cases exceed--the value for the money of desktop systems.
* Continued improvement of Windows 95 and 98 operating systems.
* Acceleration of telecommuting, which requires computing capabilities at home and at the office.
Notebook computers, however, are not the only game in town. End-user demand for mobility, portability, and ease of use has fueled an onslaught of handheld product introductions into the market.
Handheld product usage does not rival that of notebooks, and they are not designed to compete directly with these products. Notebooks--even at a higher price point--are still preferred for portable computing. This preference can be attributed to the limited computing functionality of handhelds to date. At this point, handheld products are embraced as companion devices, which is currently the main reason for their existence. However, increased usage of handheld devices is evident from both a corporate and an end-user perspective.
According to the research, usage of nearly all types of handheld products by and within corporations will increase dramatically over the next two years. Corporate IT departments expect increased usage of 3Com's PalmPilot products (48%), smartphones (36%), and Windows CE-based handheld PCs (34%). The only products expected to decline in usage are electronic organizers. The earliest entrants to the market, these products are quickly being replaced by more robust alternatives.
Corporations may not be prepared for the level of proliferation of handheld products by employees in the next two years, say In-Stat researchers. End users expect to increase use of all types of handheld devices over the next 24 months.
The number of handheld devices currently available is steadily increasing, creating an intensely competitive marketplace. Rivalry between 3Com's PalmPilot products and Windows CE-based products is heating up. Currently, end users cite equal usage of PalmPilot (14%) and Windows CE-based products (12%) and predict usage will remain at parity 24 months from now (44% for both categories). This scenario may change in the future with the arrival of Jupiter-class CE devices such as the Vadem Clio and Sharp Mobilon TriPad, and the new PalmPilot Razor and Palm VII.
Ease of use is a driving force behind the success of these devices. From both a usability and productivity standpoint, end users focus on what they need to make the unit worthwhile. Synchronization is key; the devices are used as extensions of primary computers (desktops or notebooks) and must have capability to synchronize data. In addition, portability (lightweight), usage life cycle (extended battery life), and organization features (schedule/calendar) are in high demand.
On the corporate level, functionality is important. Having capability to print or have a modem is seen as critical to the majority on the corporate side.
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