Sony Introduces Handheld Computers
T O K Y O, July 13, 2000 -- Sony Corp said today it would launch two new handheld computers in Japan on Sept. 9 and in the U.S. market later this year, joining the fray in anincreasingly competitive global market.
Sony set an initial monthly output target of up to 100,000 of the new “personal entertainment organizers,” which itexpects will retail for 55,000 yen ($510) each for those withblack-and-white display and 60,000 yen ($555) for thecolor version.
The devices use application software developed by Palm Inc., which struck a licensing agreement with Sony last year.
Along with the PlayStation home game console, digitaltelevision set-top boxes and the Vaio personal computer, mobilecomputing is considered a strategic piece of Sony’s drive tolead the development of home digital networks that link digitaltelevisions, set-top boxes and other devices.
“Japan’s market for PDAs (personal digital assistants)looks to be small, partly because mobile phones here have someof the functionality as handheld computers. Still, the lowpenetration of PDA at home could mean high growth potential inthe future,” said Katsumi Ihara, a senior managing directortold a news conference.
Memory as Small as a Piece of Gum
In Japan, the use of the Internet is fast growing, with onein five people — a little more than 27 million people — has an Internetconnection. Some 10 million logged on through mobile phones, apenetration rate of about 8 percent of the population.
The Sony’s new device features Sony’s chewing gum-sizedMemory Stick storage device and a jog dial that allows users toscroll and to open applications without a pen-like stylus.
Users can view photos and videos with the device through theMemory Stick, which is used in Sony’s Vaio computer series,camcorders and steel cameras. They can also get an quick accessto the Web by connecting the device with mobile phones.
Sony said it plans to commercialize modules in 2001 for newMemory Stick applications, targeting camera, global positioningsystem and Bluetooth wireless communication technology forhandheld computers and other devices.
The market for handheld computers in the United States isestimated at some 3 million to 4 million units, followedby Europe’s 2 million to 3 million. But in Asia includingJapan, the size of the market is estimated at just above 1million units, he said.
“With Sony’s branding power, we would like to boostpeople’s awareness of handheld devices and create a new markethere rather than bracing for competition with others,” saidIhara.
Growing Competition at Home
The launch will propel Sony, the world’s second-biggestconsumer electronics maker, into the hotly competitive marketfor handheld organizers first made popular by Palm.
Others vying in the market include software powerhouseMicrosoft Corp. and Handspring Inc., founded by the creators ofthe Palm.
“We hope Sony’s entry will reinforce the strength andshowcase the creative applications enabled by the Palm OSplatform,” Alan Kessler, Chief Operating Officer of Palm said.
Its rival Microsoft, meanwhile, is ready to fight back, asit announced today that it had started supplying theJapanese version of its Pocket PC handheld computer operatingsoftware to Japanese hardware manufacturers.
Casio Computer Co. and Hewlett-Packard Japan Ltd., theJapanese unit of Hewlett-Packard Co., will start launching PocketPCs from September under their own names, it said.