A Hit With Users, Two-Year-Old iPAQ Pocket PC Reaches Two Million Mark
Compaq iPAQ Pocket PC Revenues Grew 330 Percent From 2000 to 2001
HOUSTON, April 22, 2002
Since its introduction exactly two years ago, the iPAQ™ Pocket PC has driven to the two million unit sales mark faster than any mobile personal technology product in the history of Compaq Computer Corporation (NYSE: CPQ), extending its reach into the enterprise, eliminating the boundaries of business, and enabling anywhere, anytime access.
iPAQ Pocket PCs have placed unprecedented power, content, and mobile capabilities in the hands of workers including physicians, educators, police officers, sports enthusiasts, Olympians, firefighters, people with disabilities, entrepreneurs, and many others. iPAQ Pocket PC revenue growth increased more than 330 percent between 2000 and 2001, illustrating the success of Compaq's strategy to expand mobility and driving increased momentum and customer acceptance across all major industries.
"During the first quarter, iPAQ unit shipments increased 14 percent and revenues increased 18 percent from the previous year," said Peter Blackmore, Compaq executive vice president for Worldwide Sales and Services. "But the more important measure is the tremendous 'pull through' effect as the iPAQ drives revenues several times that with related hardware and services. Again and again, Compaq's ability to deliver innovative handheld technology solutions is proving a key to winning large, multi-year tenders to deliver complete, integrated solutions for global companies and other major organizations."
Compaq recently announced a three-year global projectwith an estimated value of $100 millionwith Kimberly-Clark Corporation that includes delivery of iPAQ Pocket PCs. Under the agreement, Compaq also will provide a range of services and other products, including desktops, notebooks, and industry-standard ProLiant servers to 28,000 users in 35 countries.
"Compaq is committed to working with customers to understand their full range of needs and deliver end-to-end, integrated solutions," Blackmore said. Based on the most recent quarterly reports, even as year-over-year revenues for the iPAQ Pocket PC increased 18 percent, other major handheld vendors showed significant year-over-year revenue declineson the order of 40 to 50 percent.
Providing Growing Strength in Wireless Initiatives
The innovative iPAQ Pocket PCwith its versatile Expansion Pack systemcontinues to demonstrate market momentum and broad customer reach. In Bellevue, Wash., city officials just launched what is being hailed as America's first-ever "wireless city," using iPAQ systems with wireless PC cards, connectivity software, and Expansion Packs to access mission-critical information. The initiative will allow city employees to complete previously paper-based tasks while out in the field, and will offer public safety personnel greater access to information in emergencies.
"Wireless data communications can help us provide a level of service that used to be unattainable," said Bellevue city manager Steve Sarkozy. "As we add these technology tools, we believe we can make our staff more productive, provide better customer service, and in some cases improve public safety," Sarkozy added.
In Tempe, Ariz., technology MBA students at Arizona State University are being equipped with iPAQ Pocket PCs to keep connected to course work. Firefighters in the Western U.S. are using GPS-equipped iPAQ systems to outsmart wind-whipped fires and minimize destruction to the environment, property and lives. (See related press release.) In Portland, Ore., Providence Health Systems is improving access and mobility for field healthcare workers by replacing some PC desktops with iPAQ handhelds, so that important data is available to them away from the office.
"Compaq's engineering and technology development capabilities are the best in the industry," said Mike Winkler, Compaq executive vice president, Global Business Units. "Our relentless pursuit of innovative technology created the hottest personal technology product in the industrythe iPAQ Pocket PC. Now that it's passing the two million unit mark, the Compaq iPAQ has become an absolutely indispensable tool for thousands of companies throughout the world."
According to IDC(1), Compaq posted significant gains in the handheld companion market share during 2001. The latest IDC data shows that Compaq reached 8.6 percent unit share in the U.S. in 4Q 2001, an increase of 1.4 unit share points from the third quarter and a full 6.4 unit share point gain from 4Q 2000. On a worldwide basis, Compaq achieved 9.6 percent unit share in 4Q 2001.
Innovative, Integrated iPAQ Solutions
Other examples of ground-breaking deployments using the Compaq iPAQ Pocket PCillustrating Compaq's accelerating momentum in sales, cross-industry support, and worldwide acceptance by customersinclude:
- Air Routing Internationala subsidiary of ARGIS International
Inc.provides iPAQ Pocket PCs to pilots to access real-time
data from secure Web sites to monitor status of flights
or access support services for flight plans, weather briefs,
or ground transportation. The handheld units' vivid color
screens are useful during nighttime flying when pilots need
to view in-depth aviation and airport data. (See related
- Allscripts Healthcare Solutions, headquartered in Chicago, has provided physicians and other healthcare professionals with iPAQ Pocket PCs for e-prescribing, and to deliver lab orders and results, charge captures, dictation, and to assess clinical reference information.
- Amara Hotel, Singapore, is equipping its staff with iPAQ Pocket PCs to increase efficiency. Guest orders in the hotel's "Silk Road" restaurant are sent to the kitchen wirelessly from the handheld units. The hotel is intent on providing even faster, more improved guest services, leveraging the iPAQ to deliver additional hotel services, including check-in and room service orders.
- Carlson Hospitality Worldwidea global leader in the hotel, resort, and cruise ship industrieshas developed its Mobile Access to Carlson Hospitality, version 1 (MACH-1) on the iPAQ platform to put real-time information in the hands of individuals for immediate action, delivering immediate results. Carlson corporate employees, hotel executives, and management companies choose from over 50 real-time business indicators that can be personalized and then viewed anytime, anywhere. "We chose the iPAQ Pocket PC platform because it offered us much more flexibility for building our own service, said Scott Heintzeman, CIO at Carlson Hospitality Worldwide. "It's easier to develop to than other platforms, offers a multitasking operating system, an Internet browser, and a bright, color screen makes it easy to view information in graphical format, letting users spot trends more quickly." A hotel-specific version is under development and will enable additional functionality like wireless guest check-in and check-out.
- CROSSMARKa professional service company in Plano, TXselected
iPAQ handhelds as the newest platform for its sales automation
tool. Charlie Orndorff, chief information officer for CROSSMARK,
says he anticipates deploying more than 2,000 iPAQ Pocket
PCs this year to his sales force in the U.S., Canada, and
Australia, a move that will cut our deployment, maintenance
and support costs in half. (See related news release.)
- Deutsche Bahn launched the "Rail and Mail" project with Microsoft Corporation to provide rail commuters bound for the recent CeBIT exhibition opportunity to access wireless data services on the train. During the first week of the program, three first-class cars were equipped with Compaq iPAQ 3850 Pocket PCs. Each device featured a wireless LAN linked with a server installed on the train. Among the real-time services available to commuters were train schedules, news, weather, CeBIT maps, and local tourist information. Recreational services such as games and audio books also were available.
- Dictaphonea voice and data management solutions providerhas developed GoMD™, a suite of software applications that exploits the convenience, mobility, and connectivity of the Compaq iPAQ Pocket PC. GoMD offers physicians a point-of-care solution for electronic charge capture, an intelligent alternative to current paper-based processes of documenting and distributing charge codes for reimbursement. GoMD also provides mobile dictation for transcription and integrated speech recognition. The prestigious Lahey Clinic Medical Center in Burlington, MA, recently announced plans to deploy a wireless charge capture solution and dictation pilot on the Compaq iPAQ Pocket PC with software from Dictaphone and its development partner, MedAptus.
- ESRIa geographic information system (GIS) software companyis working with the Pennsylvania Department of Environmental Protection (DEP) to help monitor and track the West Nile Virus throughout the state. More than 250 DEP field agents use Compaq iPAQ Pocket PCs with GIS software as part of a fully integrated, Internet-based solution offering real-time information to more than 500 users throughout the state. This solution is helping improve DEP field agent productivity, delivering more accurate information more quickly.
- The Fairmont Kea Lani Mauia 413-suite hoteland Destination Resorts Hawaiia Maui condominium management and rental companyare working with HawaiiWave and Compaq to develop mobile applications for the iPAQ Pocket PC for use in the hospitality industry. The pilot program focuses on hotel operations and security applications as well as high-speed guest services for resort condominiums.
- Holy Spirit Hospital Trust (Stiftung Hospital zum Heiligen Geist) in Germany, allows nurses to enter 1,650 meal orders daily on iPAQ Pocket PCs from patients' bedsides. The catering management system simplifies meal planning by helping minimize errors, avoid delays, and alert nurses immediately to specific patient information, such as food allergies. Once orders are completed, the units transmit the data to the 'kitchen server'an industry-standard Compaq ProLiant DL380 server.
- MasterPetNew Zealand's largest pet goods distributorhas selected a wireless sales force automation offering from regional service provider emPrise I.T. in partnership with Compaq. The system enables MasterPet's sales staff to quickly and efficiently process orders on the go and wirelessly transmit information to distribution centers. The "aVya" Field Force Solution leverages CDMA technology from New Zealand Telecom as well as iPAQ Pocket PCs and industry-standard ProLiant servers to link field sales representatives to the back office. For MasterPet, the iPAQ offers a cost-effective, easy-to-use solutionrequiring minimal user trainingthat includes functional benefits such as long battery life and high-quality screen readability.
- Maurer Technologya Noble Drilling Corporation subsidiary and a Houston-based developer of advanced oil and gas productsdeveloped the DRILLER'S TOOLKIT software solution for the iPAQ. With more than 100 drilling calculation tools, oilfield operators, engineers, well planners, and technicians can perform calculations needed for drilling and completion including mechanics, hydraulics and directional drilling.
- Paulaner Brewery, Budapest, Hungary, provides iPAQ Pocket PCs to its staff to speed up food and drink orders, significantly improving the restaurant's service delivery. Using unique IDs and passwords, the wireless iPAQ devices let staff access applications on the pub's computers and PC-based POS terminals through Microsoft® Internet Explorer.
- Sentieri Vivia project launched to maximize the tourist experience in the Madonna di Campiglio resort region of northern Italyruns on iPAQ Pocket PCs and is supported by a range of local companies. Major hotels and tourist facilities provide the handheld devices to guests and visitors to enable access to regional tourist information including weather reports, historical and cultural information, electronic maps and location systems, and the ability to book tickets, make reservations, and even design personalized itineraries or fitness programs.
- Siscosoft Corp., in Lynden, Wash., owns Golfwits, a software application
with interactive digital maps and scorecards for more than
5,200 golf courses around the world. The company provides
the software on iPAQ Pocket PCs to create a handheld "virtual
caddy," the ultimate tool for the avid golfer. (See
related news release.)
- TEGARON Telematics GmbH of Germanya joint venture of Deutsche Telekom AG and Daimler-Chrysler Services AG, in cooperation with Compaqcreated a powerful, easy to use automobile navigation system. "Tegaron Scout" navigation software uses the iPAQ Pocket PC to communicate with Compaq AlphaServer systems at the Tegaron control center. Access to GPS satellite positioning and real-time traffic data enables drivers to enter a final destination and rely on the iPAQ to provide optimum route planning in less than 30 seconds. The system received an innovation in the Telematics/Navigation category at CeBIT 2001.
- Walt Disney World has unveiled an innovative system that allows hearing-impaired guests to read text captioning on a hand-held device or non-English speaking guests the ability to hear language translations at 20 attractions at Walt Disney World in Orlando. The program runs on an iPAQ Pocket PC encased in a nearly unbreakable, waterproof plastic case designed to withstand the rigors of a busy day at the theme park. The unit runs all day on a single battery charge and automatically displays the appropriate captioning or plays the foreign language audio when in range of wireless access points and goes into "sleep" mode when the user is out of range.
- Vanderbilt University Medical Center in Nashville, Tenn. uses iPAQ
Pocket PCs to help deliver the best surgical care at lower
costs. iPAQ Pocket PCs are linked wirelessly to a central
server that stores each day's schedule of surgeries and
each patient's pertinent medical history. As each surgical
patient arrives at the medical center, staff members log
them into the system and the medical staff constantly updates
the patient's records during their surgery, continuing the
updates until the patient leaves the hospital. This ensures
that the attending physicians and nursing staff have the
latest information on each patient's location, condition,
and treatment at all times. (See related news release.)
Compaq iPAQ Mobile Solutions Extend into Sporting Events
Later this spring, NBA sports fans at STAPLES Center in Los Angeles will be able to view streaming video, the latest scores, and team statisticswhile ordering food, drinks, and merchandise, all on Compaq iPAQ Pocket PCs. Combined with software from Icewrx Inc., the iPAQ will provide fans real-time wireless and mobile capabilities access to essential sporting information and a wide range of communication functionsincluding Internet access and the ability to monitor the NBA finals from more than just the sidelines.
At the Boston Marathon, iPAQ Pocket PCs tracked registered runners and wheelchair participants and provided updates to spectators at the finish line and at clearly identified sites along the marathon route.
Earlier this year, emergency response teams at Super Bowl XXXVI used Compaq iPAQ Pocket PCs with emergency procedure guidelines and manuals for instant access to information to deal with any potential disasters. At the 2002 Winter Olympics in Salt Lake City, Australian athletes who weren't allowed to receive regular mail during the Games instead used iPAQ Pocket PCs to enhance their experience and help ensure safety. Thousands of e-mail messages were sent and received by the Olympians, who also had access to news and contact information, providing immediacy and accessibility to rich dynamic content, even with geographic and security constraints.
"The iPAQ Pocket PC commands leadership in the rapidly developing handheld market, bringing customers extraordinary productivity gains as part of Compaq's broader wireless mobility strategy," said Sean Burke, Compaq vice president and general manager, iPAQ Products and Connected Devices Division. "Compaq is committed to ensuring that users can access essential information any time they need it, anywhere they need itregardless of where the information is . . . on a corporate server or the Internet."
iPAQ Pocket PC Developer Event
Compaq is hosting an iPAQ Pocket PC Developer Event during the Pocket PC Summit
(May 28 - 31, Loews Hotel, Philadelphia). Compaq's one-day
event on May 29 will include technical presentations and information
about designing products and solutions for the iPAQ Pocket
PC. Presentations will include information on the iPAQ Pocket
PC Expansion Pack interface and driver design, as well as
sessions on creating wireless enabled applications for the
iPAQ. More information is available at http://csa.compaq.com/CSA_PPC_Summit.shtml.
Founded in 1982, Compaq Computer Corporation is a leading global provider of information technology products, services and solutions for enterprise customers. Compaq designs, develops, manufactures and markets information technology equipment, software, services and solutions, including industry-leading enterprise storage and computing solutions, fault-tolerant business-critical solutions, communication products, personal desktop and notebook computers, and personal entertainment and Internet access devices that are sold in more than 200 countries directly and through a network of authorized Compaq marketing partners. Information on Compaq and its products and services is available at http://www.compaq.com.
1 IDC's Smart Handheld Devices Overview: January 2002
Compaq and the Compaq logo are trademarks of Compaq Information Technologies Group, L.P. Product names mentioned herein may be trademarks and/or registered trademarks of their respective companies.
This document contains forward-looking statements that involve risks, uncertainties and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. Risks, uncertainties and assumptions include the possibility that the Hewlett-Packard/Compaq merger does not close or that prior to the closing of the proposed merger, the businesses of the companies suffer due to uncertainty; the market for the sale of certain products and services may not develop as expected; that development of these products and services may not proceed as planned; that Compaq and Hewlett-Packard are unable to transition customers, successfully execute their integration strategies, or achieve planned synergies; other risks that are described from time to time in Compaq and Hewlett-Packard's Securities and Exchange Commission reports (including but not limited to Compaq's annual report on Form 10-K for the year ended December 31, 2001, HP's annual report on Form 10-K for the fiscal year ended October 31, 2001, and subsequently filed reports and HP's registration statement on Form S-4 filed on February 5, 2002). If any of these risks or uncertainties materializes or any of these assumptions proves incorrect, Compaq's results could differ materially from Compaq's expectations in these statements. Compaq assumes no obligation and does not intend to update these forward-looking statements.