Wake-up call for handheld computers

By Adam Gifford

They're small. They're snappy. They look so ... useful. But will they really make that much difference to my business?

That's the question a lot of people have been asking about the class of computers lumped under the category of personal digital assistant (PDA) or "handheld".

Mostly it seems the answer is no. International Data Corporation (IDC) figures indicate a total New Zealand market of only $7.2 million last year, with about 7600 units shipped, a 12 per cent increase on 1997.

Tablet-style personal companions, dominated by 3Com's Palm Pilot (now just Palm) organiser, accounted for 4211 units, with a few sales going to Windows CE devices like the Phillips Nino or the Casio Cassiopeia.

PC companions or clamshell devices with keyboards accounted for 3362 units.

The majority of those were Psion organisers. Windows CE-based products made by Phillips, Casio and other manufacturers were again in the minority.

Customers have indicated with their dollars they don't want to carry their desktop in their pocket.

Last year's handhelds may have been expensive executive toys for the early adopters, but the next generation is starting to have the power, functionality and, most important, connectivity to make them serious tools.

Users have been driving manufacturers and third party software developers to find ways to get core business applications on to the palmtop, something that can lead to disappointment if it is done without sufficient research.

Kurt Brandon, wireless communications director of Corporate GSM, which does integration work for large Vodaphone customers, says people assume devices like Palms can receive faxes - they can't - or that connecting devices to wireless networks is as simple as plugging in a modem.

"The biggest problem is people don't ascertain their needs before their wants. I'd say 95 per cent of customers come in having already made decisions about what they want, without ascertaining if it will work," Mr Brandon said.

But as they become more powerful as computers, the handhelds face a challenge coming from the other direction.

Phones are getting smarter. Telephone screens are getting bigger and menu buttons are being used to enable a range of applications.

Two key technology standards being developed by consortia of computer and telecommunications manufacturers are taking phones into the realm of computing: WAP (Wireless Application Protocol) and Bluetooth, a low-powered radio technology which will allows any Bluetooth product to connect to any other Bluetooth product within a 10 metre range regardless of operating system or hardware platform.

Nokia has had a hybrid phone-handheld for GSM networks available for some time. While the first generation Nokia 9000 was too bulky for most users, the just-released 9110 is the size of last year's mobile phones.

For that you get a phone which opens out to reveal a screen and small keyboard, which can be used to send and receive faxes or e-mail, keep a contact file and calendar, take notes and browse the internet.

Ericsson has a similar device promised for later this year, the R380s, which merges a phone with a pen-driven palmtop screen.

Nokia country manager Jack Asselstine said while Nokia 9000 was too bulky for most users, the 9110 will appeal to the business user who does a lot of travelling.

"The 9110 is in essence taking your office with you, downloading e-mails, fax in your hand.

"These are all powerful tools to a business user who is travelling extensively. I have thrown away my manual diary and just use this now," Mr Asselstine said.

Consultant Greg Mendenez said the move of handheld computing to the phone handset was picking up speed.

"With a phone you don't need RAM. You can store your data on the Internet in a way that is private and secure," Mr Mendenez said.

"There is a paradigm shift with the handset. It's been ear-mouth. Now it moves to the eyes. In that six inches there is a plethora of opportunities and experiences."

He said the WAP standard used in the Nokia and Ericsson phones was "a killer technology" because "WAP gives you the internet on your phone."

That's not just the high end, but also the standard models as application developers get the power to customise menus.

Vodaphone is starting to push its short message service (SMS), a little-used extra feature which treats a phone like a pager.

The carrier is selling a range of information services using SMS, including news, sports, sharemarket updates, horoscopes, lotto results, weather forecasts and an e-mail preview.

To make it even simpler, Auckland software company Jungle Drum has developed packages which allow two-way message communication between PCs and GSM mobiles.

For those who have learned to use and love their Palm, Psion or CE device, putting everything on the phone isn't the answer.

Arron Judson, Ericsson's wireless data product manager, said the killer application is "giving people access to the information they use every day, whether it be e-mail, their archives or the Internet".

That can be done through the GSM network or through Telecom's CDPD (Cellular Digital Packet Data) network, using one of the Sierra Wireless CDPD modem.

Mr Judson uses CDPD to keep a permanent link to his mailbox, so e-mails from his parent offices in the United States and Sweden can be responded to immediately.

Andrew Sylvester, mobile data product manager for Hart Candy, said businesses are fitting PDAs with modems to make their applications mobile, such as allowing sales staff to access product and customer databases while in the field and enter sales so products can be dispatched immediately.

Examples include Palms fitted with modems like Novatel's Minstrel Wireless IP modem, or CE handheld PCs with Sierra Wireless AirCard modems.