ROANOKE TIMES

                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: SUNDAY, December 5, 1993                   TAG: 9311300380
SECTION: BUSINESS                    PAGE: F-4   EDITION: METRO 
SOURCE: ELISA WILLIAMS ORANGE COUNTY REGISTER
DATELINE:                                 LENGTH: Medium


COST-EFFECTIVENESS OF HAND-HELD COMPUTERS UNCLEAR

If you believe the hype, nearly every executive who ventures away from his desk needs a hand-held computer.

That also goes for blue-collar workers who stroll through warehouses, craftsmen who make on-site price estimates and doctors who make hospital rounds.

Hand-held computers called personal digital assistants, or PDAs, are said to have wide appeal because they're designed to manage the random details of everyday life.

The devices, which range from about $700 to $900, store phone numbers and appointment calendars, send and receive messages, exchange information with desktop PCs, and provide an electronic doodle pad.

Within several years they promise to replace cellular telephones, become as convenient to carry as a wallet and as sophisticated as a portable computer.

But are they really for everyone?

"The bottom line is that today the cost of these devices makes it difficult for the average consumer to justify," said Andrew Gore, a senior editor at MacWeek who has written two books on PDAs. "People need to do a cerebral flush and forget everything they've heard or read. They need to look at what the product does and what it costs and make an evaluation from there."

Though PDAs are pricey for the average consumer, anyone whose living depends on managing a lot of details and keeping in touch with the office stands to benefit from owning one, Gore said.

But in justifying the price tag, buyers need to understand what PDAs do best and where their weaknesses lie.

Unlike a portable computer or even a simple paper notebook, PDAs are not suited for writing text, such as letters. The handwriting-recognition technology, which translates a person's printing into type, is cumbersome. And the roughly 3-by-4-inch screen makes a large quantity of notes difficult to handle.

What PDAs do well is manage data already on file.

For example, an executive could quickly review a memo, make changes, and fax a corrected copy back to the office.

PDAs also work for collecting and generating data in chart form, such as checking off items on a sales order or entering responses in a survey.

Consumers have several PDAs to choose from, with more due soon.

Among the first hand-held computers to hit the market were Apple Computer's Newton MessagePad and Zoomer, developed by Casio Computer and Tandy Corp.

AT&T's EO! has been available since June, but many industry analysts put it in a different category because of its internal cellular phone and tablet-size screen.

Others slated for arrival within the next few months are AST Research's PalmPad and Model 2390 PDA, International Business Machine's Simon, and Compaq Computer's joint project with Microsoft Corp.

Though hand-held, pen-based computers are streaming into the marketplace, only about 70,000 PDA units will be shipped this year, according to San Jose-based Dataquest.

Those numbers are expected to grow dramatically as the selection of software applications increases, prices fall below $500 and communications options increase.

By 1995, 805,000 units will be shipped and by 1997 the number will increase to 3.6 million a year, Dataquest analysts estimate.

"No one is looking for phenomenal sales success in the first few years," said Robert Miller, vice president of merchandising for Radio Shack, a retail division of Fort Worth, Texas-based Tandy Corp. "Like any new product, it's going to suffer through some teething pains."

Critics say the primary downside of the products on the market is price. Both the Newton MessagePad and the Zoomer range in price from about $700 to $900 and exceed $1,000 once consumers have added key communications peripherals.

That range is high, because the typical electronic pocket organizer sells for less than $200 and a portable computer can be purchased for less than $2,000, including a modem to send data and electronic messages.

"Communications will be key for reaching the business user," said John Jerney of Pen-Based Computing, a computer-industry newsletter.

To infiltrate the mass market, however, PDAs must offer broad-based software applications, Jerney said.

Zoomer is attempting to reach the mass market with its combination of built-in software that includes Pocket Quicken, a personal finance program, and access to America Online, an electronic network that offers news clips, stock quotes and travel information.

But to make the investment in hardware worthwhile, Jerney said, consumers will want a wide choice of software. Among the software applications either available or under development for PDAs are games, personal-finance programs and travel-related packages that list restaurants and services in major cities.



 by CNB