New Notebooks and Phones

Hewlett-Packard Co. (HP) announced several new HP Compaq business notebooks designed with increased performance and environmental characteristics. Apple, Inc. has released the details of its forthcoming new iPhone, which will include access to AT&T Wireless' third generation network. Lastly, Palm Inc. and Verizon Wireless released a Palm Centro for the Verizon network.

Focal Points:

• HP is releasing several newly styled business notebook computers including the all-new HP EliteBook premium series, complete with enhanced software to improve business user productivity and increased environmentally-friendly designs. Notebooks include HP File Sanitizer to prevent recovery of deleted data, HP 3D DriveGuard to protect hard drives should a fall occur, and HP SpareKey to help recovery system access using predetermined personally identifiable information. The HP EliteBook offers a few unique features for the mobile professional, including the ability to meet MIL-STD 810F military standards such as extreme temperature operability. Impact for the display panel can accommodate a high degree of force, and an available Illumi-Lite light emitting diode (LED) display is both brighter than traditional displays and is free of hazardous mercury. With a 14.1- inch screen, the HP EliteBook 6930p can deliver up to 15 hours of battery life with the optional additional Ultra Capacity battery.
• Apple's next generation iPhone will be significantly less expensive than its predecessor, offer improved data network speeds, and include built-in Global Positioning System (GPS) capabilities. Pricing will be approximately $200 less expensive than the current iPhone, with costs ranging from $199 to $299 for the 8 gigabyte (GB) and 16 GB versions, respectively. Monthly costs for data will increase by approximately $10, thus placing the lowest data and voice package at $70 per month. Apple and AT&T Wireless have taken steps to prevent customers from moving iPhone to other networks by forcing a two-year contract and activation at the time of purchase. Most importantly for corporations, the new iPhone will have significant enhancements that make the device much more enterprise compliant. A significant number of enterprise developers are said to be included in the beta program for Apple's iPhone software development kit, and applications that enable access to time-sensitive data are expected to be among the first offered for corporate consumers. Other corporate improvements include access to AT&T's high speed network, improved security functionality, and tight integration with Microsoft Corp.'s Exchange Server. Exchange Server integration is enabled using Microsoft ActiveSync, which will handle push updates for calendar appointments, contacts, and e-mail. The new iPhone will be available on July 11, according to the company. Beyond the United States, 70 other countries will have access to the iPhone by the end of the year.
• Palm and Verizon have already released the Centro smartphone for the Verizon high-speed EVolution-Data Optimized (EVDO) data network. Verizon's version of the Centro will be similar to the versions already offered for AT&T Wireless and Sprint Nextel Corp., including Microsoft Exchange Server access using Microsoft ActiveSync. GPS functionality is included, and can help direct users via the built-in Google Inc. Google Maps application. 64 megabytes (MB) of memory is available for user application and data storage, which can be expanded using a micro Secure Digital (micro SD) memory card slot. The Centro is smaller than its Treo big brother at a mere 2.1 inches wide, 4.2 inches high, and 0.7 inches deep, yet it features a full QWERTY keyboard and decent 320 x 320 color touch screen. Pricing for the Centro comes in at $99.99 with a two-year contract after a $70 rebate.

Experton Group believes HP is improving the design and included functionality of its latest batch of notebook PCs to greater differentiate itself from competitors. Included software protection functionality puts HP on par with the business-oriented functionality of Lenovo Group, Ltd. ThinkPad line, and increased system rigidity and improved environmental designs are thought leaders for the company. Systems designed to meet the needs of extreme environments are on the rise as Dell, Inc. also released a competitor to the market-leading Panasonic Toughbook. IT executives should expect for HP and others to attempt to enhance product differentiation wherever possible; however, IT executives will find this is still an excellent time to pit vendors against each other in contract negotiations.

IT executives that have previously banned iPhones from the enterprise will find that the next generation addresses many of the concerns previously raised by IT administrators and corporate security adherence requirements. Integrated Exchange functionality is a key requirement for handheld devices to be considered as a viable enterprise alternative, and IT executives should expect new user applications and management infrastructures to become available within the next six months.

 Experton Group advises IT executives to begin experimenting with iPhone devices to evaluate compliance and support requirements as pressure from executives and user to support new iPhones will be even greater than they were at the device's launch last year. 

While Verizon's new Centro breaks no such new barriers, it's $99 price point and enterprise functionality offer viable and cost effective alternatives for corporations nonetheless. The Centro represents a good deal of Palm's recent increase in market share and financial performance of late, but the company will need to launch new product within the next 12 months if it is going to truly reverse what has been a three-year downward trend. The company is promising a new vision and lease on life – and has a chance at delivering given its new leadership and investment – but time is running out as corporate and consumer interest in the firm's devices is rapidly waning.