Comdex/Fall '96: handhelds based on Windows CE start the rush

Electronic News, Nov 25, 1996 by Cynthia Bournellis

Las Vegas--The race to get the first handheld computers to market based on the new Windows CE operating system began last week at Comdex, as seven major OEMs unveiled their handheld prizes.

Designed by Microsoft, who launched the software platform two months ago (EN, Sept. 16), Windows CE is a 32-bit, open and scalable operating system--previously code-named Pegasus--for small form factor devices. Its synchronization feature lets it be a companion to the desktop or laptop computer.

On stage at the Cirque Du Soleil theater at the Treasure Island hotel, where Microsoft footed the bill for more than 1,000 people to attend a private performance given by the Cirque Du Soleil circus performers, Microsoft chairman and CEO Bill Gates single-handedly pronounced the coming out of the HPC (handheld personal computer).

While chip partners Philips Semiconductor, Hitachi and NEC took the lead in September, revealing their chip strategies for Windows CE, systems companies talked in bits and pieces then about this new found category (EN, Sept. 23). But due to Microsoft, who basically prohibited OEMs from giving specific details to the public about their products and partnerships with independent software developers (ISVs) prior to the official launch, OEMs were forced to await the fanfare of the overcrowded Comdex show to demonstrate their products.

Some sources said Microsoft wouldn't even allow the OEMs to talk to ISVs before Microsoft decided who the initial partners would be. "We had ISVs practically knocking down our door begging us to talk to them about bundling their software," said a source within one of the OEM partner companies, who added that this tight control has forced them to forgo bundling third-party software applications, such as printing and fax, with the initial launch of their HPC. "We will provide these apps through third parties."

The first OEMs who will ship Windows CE devices between now and the first half of next year are Casio Computer, Compaq Computer, Hewlett-Packard, Hitachi, LG Electronics, NEC and Philips Electronics. Each device will range in price between $500 and $700, depending on the memory configuration and specific features and accessories.

Common to all of these devices is, of course, the main feature for which Windows CE was designed--to provide automatic synchronization of data to a desktop or laptop computer running Windows 95. But this process is limited. The only data that can be synchronized is data from the user's personal information manager (PIM) software. For instance, once the HPC is put into its cradle or docking station, data used by the PIM software is automatically synchronized with similar data used by Microsoft's Schedule+ program on the desktop, as long as the desktop is running a program from Microsoft called the HPC Explorer, a similar yet different program from the Explorer program on the HPC.

Each HPC comes bundled with scaled-down versions of Microsoft's Excel, Word and Schedule+ PIM. Other data such as word processing and Excel files have to be manually transferred via a task managed by the HPC Explorer on the desktop that mirrors the HPC. Files are copied and transferred by moving icons.

Also common to each HPC is the amount of RAM. Each device comes in either 2-megabyte and 4MB models to start. There is also upgradeable ROM, a Type II PC Card slot, an infrared interface, AC adapters and cabling for hooking up the handheld to a PC. Some OEMs, on the other hand, are selling accessories separately. Casio is selling an AC adapter set separate from its Cassiopeia HPC for $79.95 suggested retail and a docking station with an extra stylus, AC adapter, rechargeable battery and recharger for $149.95 suggested retail.

In terms of specific features, here's a brief rundown on each vendors' product. The Philips Velo 1 runs the company's PR31500 processor, which is built on a MIPS 3910 RISC core. It has backlighting and a high-speed chipset called the TwoChipPIC. It also has a built-in 19.2 kilobits-per-second modem, fax/send capabilities, access to corporate cc:Mail and Microsoft MS Mail E-mail, a low-profile RJ-11 jack and the Velo Voice Memo integrated voice recorder. It incorporates mini-card technology and offers two slots for memory expansion and system upgrades. An attachable Type II PC Card V-Module will be available for wireless communications and global positioning systems. The Velo 1 will ship 1Q97.

Philips, as are other OEMs, is targeting Fortune 1000 companies, because this market will provide longer sales cycles as opposed to retail, said Luciane Marques, director of marketing and business development at Philips' Mobile Computing group. She said she expects Philips to sell at least 100,000 units by the end of 1997.

NEC's MobilePro device runs on the company's VR 4101 processor, a high-speed, low-power 64-bit MIPS RISC device optimized for Windows CE. MobilePro also comes with 8MB of replaceable ROM. Its defining feature, according to Sheldon Safir, director of marketing for NEC Computer Systems, is the keyboard, which gets users as close to touch typing as possible. But aside from that, Mr. Safir admitted that differentiation will be real tough. "In six months, it will be a very competitive business."