The palm computer makers of the world are worried about the effect the introduction of Microsoft Corp’s Palm PC will have on their business, and 3Com Corp’s Palm Computing Inc division has been doing its best to keep the name of its PalmPilot in the spotlight. However, UK palmtop computer maker Psion Plc has not twittered once over the imminent arrival of the Microsoft offering, but the company’s shares went plummeting on publication of its financial results when chairman David Potter said he was cautious about Psion’s short term future (CI No 3,361).
By Emma Nash
The London based organization last week reported net profits for the year to December 31 down 25.1% at 7.7m pounds on revenue up 14.4% to 142.0 pounds and earnings per share fell 29.3% to 10.3 pence. Shares dropped 20% to 333 pence when Potter aired his worries for the future. Psion’s Psion Series 5 a 32-bit, 13oz handheld device that claims laptop-type power launched last June (CI No 3,183) based on the company’s EPOC32 operating system, is recognized as containing good technology, but will that matter when the Redmond software giant goes careering into this space? Psion spokesperson Anthony Garvey doesn’t think the Palm PC will have any impact on its business, but believes it could be the end for 3Com’s Palm Computing division. Garvey said: It’s going to have a massive effect on the Pilot. This is it. Garvey argues the Palm PC falls into a different category to the Psion products, and describes it as gimmicky. But the company will feel the effects of Microsoft’s reduction in price of its CE 1.0-based handheld devices, which in theory compete with the Psion. Microsoft wants to get rid of them and has cut the price right down to just $99. Garvey believes Psion will see some medium term distortion as CE 2.0 fails as well. Garvey says the equivalent devices are much bigger than the Psion and with a $1,000 price tag much more expensive, and comments people want palmtops and not arm held devices. Last week 3Com announced it is taking legal action against Microsoft relating to the name of its new devices. 3Com claims the Palm PC name is to similar to its own PalmPilot name and has launched a legal attack in Germany and Italy, initially (CI No 3,362). The very next day the company said it is to cut its PalmPilot prices by around 25% (CI No 3,363), presumably to lessen the impact of the Palm PC launch. This is a move supported by Garvey and Psion, which believes Microsoft is severely damaging the market. Reports in the weekend press in the UK suggest Psion could be about to head down the same troubled path that Apple Computer Inc has been traveling along for some time now. Psion clearly has good technology and users of its products generally swear by them. But Psion is a small UK company in comparison to the might of Microsoft, and as the industry has seen, a big name goes a long way. But Psion’s big plan at the moment is to license its technology out to other companies who can then include it in their products. According to Garvey, operating in this way will ensure we don’t die in this market like Apple did. He went on to say the company would rather die in the IBM way, where it licenses its crown jewels to other companies. Psion does not want to be known as a proprietary organization and recently signed a licensing deal with Philips Consumer Communications, a Lucent Technologies Inc and Philips Electronics NV joint venture. The company will use Psion’s Epoc 32-bit, C++-based, multitasking operating system (CI No 3,244). Philips has just announced a new smartphone clip-on which connects to Philips Ilium GSM mobile phone to provide data, messaging and voice communications capabilities for mobile users. When Tadpole Technology Inc’s founder and former managing director George Grey set up his new company GeoFox Ltd, he decided to license the Epoc32 operating system to be used in its four hand held computers (CI No 3,262). Grey said the company turned to the operating system after extensive testing of many systems found it was the only one with the flexibility and functionality required to run the machine successfully. According to Garvey there have been other licensing deals struck, but contractual legalities prevent Psion from announcing who the licensees are. There should be news on new licensees by the end of the year.
