HP merger to shake handhelds

Compaq and HP have similar offerings in the PDA and notebook sectors, so the weaker brands will not survive the merger

Notebooks are becoming commodity items and there is also little to differentiate between most Pocket PC handhelds, so the mobile line-up of the merged HP-Compaq is a prime candidate for rationalisation. Many observers say Compaq's models have the stronger brands and these, largely, will survive. But individual HP products that have unique selling points have survived the initial cull.

Both HP and Compaq were quick to introduce new handhelds based on Microsoft's Pocket PC 2002 platform towards the end of 2001, shortly after the merger agreement was announced. Compaq's iPaq is the most successful Pocket PC device on the market in terms of units shipped, and will live on as the HP iPaq, replacing the less popular HP Jornada.

However, Compaq no longer ships any keyboard-based models, such as HP's recently announced Jornada 728. These devices have become rare due to their expense and the more convenient format of the Pocket PC models, but are better suited to some applications that require a lot of text entry. HP has said that it will move the best of the Jornada's features into the iPaq line, and this may be the kind of feature it is referring to.

HP's forthcoming Jornada 928 wireless devices, based on Pocket PC 2002 Phone Edition, is also likely to survive - albeit rebranded as an iPaq.

In notebooks, Compaq has also had the greater success. Its Armada range of corporate portables was replaced last year when the firm launched its Evo brand that also includes desktop PCs, and this line will form the basis of the new HP range. HP's Omnibook line is set to be dropped in favour of the Evo notebooks after 2002, although the choice may not be as simple as it first appears.

The decision regarding which products are retained in the longer term may go beyond brand strength, however. "It may have a lot more to do with the infrastructure that surrounds the products," said Ranjit Atwal, an analyst at research firm Gartner.

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