Treo is next step for Handspring

When Handspring (www.handspring.com) envisioned creating the VisorPhone, the company wanted to build a PDA “with an eye toward being able to add functionality,” according to Mark Dadgar, Handspring product manager. “One of the big thoughts around that functionality was adding wireless connectivity capability.”

When Handspring was interviewed in 2000 for the release of the VisorPhone, Joe Sipher, Handspring vice president of product marketing, made it clear that all Handspring was doing was adding voice to a hand-held. Sipher told Wireless Review: “I don’t see us as in competition to Nokia, Motorola or Ericsson because that’s taking a very different look at what handsets are all about.”

One year later, they seem to be taking a different look. Instead of adding on, the company is integrating wireless connectivity.

On Oct. 15, Handspring introduced the Treo family of products, the Treo 180 and Treo 180g. According to Dadger, the Treo products are intended to solve the “Batman belt syndrome,” where they have a cellular phone, pager and PDA all hanging on the belt.

“We’ve decided to try and build all of that functionality into one device,” he said.

The “compact communicators” combine a mobile phone, wireless e-mail, messaging and Web browsing, and a Palm OS organizer.

So what can the Treo do that VisorPhone can’t? The first thing is that it can fit in your pocket, measuring 4.3 x 2.7 x 0.7 inches. The second is that the Treo is software-upgradable to GPRS. The third is that the Treo 180 has a QWERTY keyboard, simplifying the process of entering text messages, e-mail messages, Web sites and other information. The Treo 180g is for those who prefer Graffiti text input.

Other companies that are adding specific capabilities to Treo include the following:

1 Wavecom’s digital wireless standard modules technology will allow Treo to offer wireless voice and data communications over GSM/GPRS networks. 1 Visto is co-developing a wireless e-mail solution for Treo. The solution will provide users with automatic delivery and remote management of corporate desktop e-mail. Expected in Spring 2002, software for the wireless e-mail solution will be available for download and self-installation by Treo owners.

Handspring currently is in talks with GSM carriers Cingular and VoiceStream, and also to carriers around the world. The product will be available early next year.

There is some bad news to report on Handspring as well. The company recently announced revenue of $61.4 million for the first quarter of fiscal 2002 ending September 29, 2001, up ever so slightly from $61.0 million for the prior quarter ending June 30, 2001. Compared with the same period last year, revenue decreased by 13%. Excluding amortization of deferred stock compensation and intangibles, Handspring reported a net loss of $26.2 million during Q1. Excluding these costs, total operating expenses were $33.7 million, or 55% of revenue. Including amortization of deferred stock compensation net loss for the quarter was $32.7 million.