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Handspring unveils Treo
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October 15, 2001: 12:41 p.m. ET
New handheld devices combine mobile phone with electronic organizer.
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NEW YORK (CNNmoney) - Handspring Inc. Monday unveiled its newest line of handheld computers that integrate a wireless phone, Web-browsing and e-mail features into a single pocket-sized device.
Called Treo, the new line of products is expected to hit store shelves in early 2002 for an estimated retail price of $399. A color-screen version is expected to be available in the second half of the year with a retail price of about $599, the company said.
With the introduction of the Treo, Handspring beats rival handheld computer maker Palm to market with a hybrid handheld-phone device. Palm, the market leader, last month postponed the introduction of its i705 model, which is expected to be similar to the new Handspring devices.
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The Handspring Treo 180, seen here, is the first PDA to combine a cell phone with a handheld organizer | |
Handspring (HAND: up $0.86 to $3.05, Research, Estimates) and Palm (PALM: up $0.33 to $2.77, Research, Estimates), which use the same software but are rivals in hardware, together garner well over 50 percent of the total market for handheld computers, sometimes called personal digital assistants, or PDAs. They compete primarily against PDAs using Microsoft's (MSFT: up $0.71 to $57.09, Research, Estimates) Pocket PC operating system software.
All PDA makers have been feeling the pinch in recent quarters as demand for such devices has leveled off in the face of a weakening economy. Last week, an industry research firm said that growth in U.S. retail sales of PDAs in August had fallen to its lowest level of the year despite a sharp decline in the average prices.
As vendors move toward hybrid devices, which many have been talking about for the past two years, some analysts expect the PDA market to become reinvigorated.
"Over the past year, of all the devices that have come out -- the Palms, the Handsprings, the Pocket PCs -- all of them have given current users very little reason to upgrade," said Kevin Burden, industry analyst with market research firm International Data Corp. These new products may change that, he said.
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One of the most compelling features of the Treo is its size, some analysts say. "No one likes to carry a brick around, and this is the smallest, thinnest, lightest device that has all those combined features," said Gerry Purdy, chief executive officer of market research firm Mobile Insights.
Initially, the new Handspring devices will be available in two configurations: the Treo 180, which has a tiny keyboard similar to those used in e-mail pagers; and the Treo 180g, which uses Palm's Graffiti handwriting recognition system.
Each has a flip-up cover that doubles as the earpiece for the phone, and a monochrome display.
The Treo uses a wireless communications standard called global system for mobile communications, or GSM. The GSM standard is most prevalent in Europe, but it also is available in the United States. Handspring said it expects Treo service plans to be provided by leading GSM carriers in North America, Europe and Asia.
Shares of Handspring were trading more than 38 percent higher on Nasdaq early Monday afternoon. 
-- from staff and wire reports
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