Apple needs a PDA to help build market share among business class
users. The majority of PDA devices are purchased through or for the
enterprise. As this is the market Apple has had trouble reaching, why
not give them what they want?
I must come clean and admit that I am a PDA addict. I love nothing
more than rushing to the front door and finding another PDA waiting to
be put through its paces. Over the last five years, I have owned 5
Windows CE machines, 2 Psions, two Rex PIMs, 3 Palms and 5 Newtons. I
maintain three regular machines at all times: one high-end laptop
replacement, one mid-tier machine with documents and PIM functions, and
one low-end machine which is my calendar and address book. My current
crop includes a Compaq Ipaq (high end), a Psion Revo Plus (mid) and a
Palm Vx (my low end). I tell you this only to make my next comment
relevant.
- No machine has ever surpassed the
Apple Newton 2100!
The MP2100 was the perfect blend of form and function, with the only
OS built from the ground up to work 
with the pen
paradigm in mind. The interface is wonderful, and the integration of
the applications was second to none. Taking a note and need to schedule
a meeting with the subject of that note? Simply highlight the name and
add it to the calendar.
This machine was crafted using all of the skills and acumen of the
Apple design team. These excellent machines still have one the most
loyal PDA followings four years after cancellation. Almost daily, I
find an article or Web rumor mentioning a new Apple PDA. From Web
tablets to new Newtons, I have seen them all.
Users want the company who pioneered this form to get back in the
fold. I think all of us would love to pull an Apple-branded PDA from
our pockets. Adding an Apple PDA seems to be a perfect complement to
the Apple marketing strategy.
History
Apple was the first company to make the PDA a commercial success.
John Sculley's vision of a digital assistant was refined over the
course of 5 years, and the Newton business unit was on the verge of
becoming profitable. Unfortunately, the seemingly bright future of the
Apple PDA was a victim of Steve Jobs' return to the company in
1997.
The Newton community has long since speculated on why the plug was
pulled. The rumors range from Jobs hating everything associated with
Sculley to a back room agreement with Microsoft to eliminate Newton in
exchange for capital. In my mind, the most logical theory is that as
Jobs was working to correct the mess he inherited.
The Apple Jobs returned to in 1997 had lost focus. The product
matrix looked like a family tree, and inventory and support costs were
increasing. Jobs first act was to focus the company and build a core
product matrix. The Apple PDAs had become so good by 1997 that they had
begun to siphon some of users from the PowerBook line.
The Newton no longer fit the matrix and was killed at the height of
its success. This argument makes sense - look at the Newton MP2100 and
the current Pocket PC lines. Those machines handle a great portion of
the average user's computing needs. Why spend $2000, when you can spend
$500-800 and get a machine that handles all of your daily needs?
Knowing this, how and why would Apple want to get back into a market
they created and abandoned?
Business Justifications
Lets flash forward to 2001 and look at the current Apple markets.
The Apple product line has never been stronger in terms of user
acceptance and quality. You need only visit the local Apple Store and
see the wanton looks of shoppers as they eye the PowerBook G4 or Cinema
Display.
The major weakness for Apple has been and continues to be
penetration of the business market. Inferior product from other vendors
rolls out to business users daily. Apple loses the market due to
perceptions that their products cost too much and have compatibility
issues.
This is the market that Apple needs to hit in order to increase
current market share. This also happens to be the largest segment for
PDA users. It would seem that offering a PDA to this group would help
gain more mind share for Apple.
If nothing else, allowing users to see Apple support and get on
Apple mailing lists would be a plus. My argument is that the
business market is the key to growing market share and that the PDA is
a good way to gain ground on that market. Accepting these
arguments, what should Apple do to execute this plan?
How Should They Proceed
At the beginning of my article, I had my Newton comrades saluting.
The next paragraphs will make them send me mail using characters
instead of words (!@#$!@#$!@$). The PDA solution should be cost
effective and not compete with the iBook line. Keep it simple
and fairly low cost, and make it complement the product matrix. Here is
my plan:
- Apple should buy Palm immediately - lock, stock, and market share.
Since inception, Palm has provided a low cost product made to
complement users existing machines. Buying Palm gets you a large user
and developer base, along with quick acceptance as the standard PDA
platform (it's still larger than the growing CE install base). Apply
the Apple design sense and innovate the OS to include a few bells and
whistles without making the price climb to the current $600-plus for
PocketPCs. Business users will suddenly be carrying Apple products into
corporate boardrooms across the world.
- Kill the Palm licensee program. We all remember Apple clones in the mid-90s. Has anyone seen
the great selection of Handspring add on components or the beautiful
Sony Clies? I would bury them tomorrow and see about licensing some of
the technology from Handspring for their Springboard modules.
- Make integration with the Mac platform very reliable and simple to
use. Add the "MacPalm" to the retail channel including Apple Stores,
and then offer trade-in coupons for the current crop of Palm
machines.
This plan would give Apple an immediate market share and viability.
One reason Palm has had difficulties over the last few years is a lack
of innovation. Apply the Apple skills to updating the OS and focus on
the market, and you would be able to exploit the current user base to
make sure you have a Mac product in the hands of the business
community.
In conclusion, I must admit I would love nothing more than to see
Apple build a new Newton running an updated Newton OS and featuring all
of the bells and whistles we expect in new PDAs.
I can only dream of what might have been had the Newton continued on
its development cycle over the past four years. Unfortunately, I think
that dream makes little sense when placed in a business context. The
PDA does make sense, and the obvious choice would be to hit the ground
running with a built in installed base. A machine that complements the
wonderful Apple portable line and allows business users to carry and
Apple brand into the office would be a wonderful addition.
Already a Newton user? Join our Newton
email list!
