HP selects iPAQ for PDA thrust - Jornada buyers beware

NEWS Hewlett-Packard will merge its Jornada personal digital assistant (PDA) into the better-selling Compaq Computer iPAQ line. Enterprises using Jornadas should inquire about HP's future PDA products as soon as possible. Event
On 8 May 2002, HP outlined its plans to integrate the Compaq iPAQ line with the HP Jornada line. HP says it will phase out the Jornada brand by Q4 02. HP laid off the 90-member Jornada engineering and marketing team headquartered in Singapore. - The Jornada 560, introduced in October 2001, will be available until Q3 02 or Q4 02.
- The Jornada 570, which was expected to replace the 560 line, has been cancelled.
- The Jornada 928, a wireless clamshell PDA based on Microsoft's Pocket PC 2002 Phone Edition, will likely have its future decided shortly.
- The Jornada 710, 720 and forthcoming 728 will continue to be sold but will eventually be rebranded under the iPAQ name.
- The iPAQ 3100, 3600 and 3700 models will be phased out, making the iPAQ 3800 series the flagship line among HP's PDA offerings. First Take
Selection of Compaq's iPAQ - now HP iPAQ - as the flagship PDA for the newly merged HP/Compaq comes as no surprise. The iPAQ has had high success with commercial accounts and sold more than 2 million units since 2000, twice the number of Jornadas sold. Jornadas should continue to ship until the current production run finishes in Q3 02. Although the 700 series Jornada will survive beyond that point, it will likely not change significantly. The discontinuation of the Jornada 560 will create a gap in the new HP iPAQ line, which will have no small-tablet PDA with integrated expansion slots. Consumer PDAs are another gap in the HP iPAQ product line. Even if HP introduces a new iPAQ for consumers, it would likely appear no sooner than Q3 02 and would miss the critical back-to-school sales but arrive in time for the holiday season. Many enterprises prefer the Jornada 560's sleek form factor over the Compaq iPAQ's expansion jacket approach, which adds bulk, weight and a messy array of cables. Although HP will likely try to deliver a new, sleeker iPAQ to replace the Jornada 560, the Compaq design team, which will manage all future development for HP, has fallen behind the competition technically and in industrial design. The iPAQ value proposition lies mostly in its support capability, peripherals, bundling deals and in Compaq's understanding of business needs. Gartner recommends:
- Enterprises using Jornadas should get a road map of HP's future PDA products as soon as possible.
- Customers that put a premium on support capability and relationship continuity should work with their HP account representative to migrate to the iPAQ 3800 line.
- Customers that consider the PDA form factor the most important selection criterion can determine whether to consider alternative vendors such as Fujitsu or Toshiba.
- iPAQ customers should continue business as usual.