HP’s iPaq refashioned into ‘lifestyle’ gadget

BY MARICEL E. ESTAVILLO, BusinessWorld Reporter Hewlett-Packard’s iPaq mobile devices are being groomed to become "lifestyle" gadgets -- shedding the brand’s stiff business image, for it to dig deeper into the hardly tapped consumer market. Hewlett-Packard (HP) is bent on giving its iPaq line more focus. In the latest in its string of reorganization moves, HP announced last week that it will create a new business unit for iPaqs, separate from its notebooks and handhelds. Separate units for notebooks and iPaqs will now compose HP’s mobility business unit. Previously, HP’s iPaqs, notebooks, desktops and workstations were all lumped in its personal systems group. Amid this recent global development, HP’s Philippine subsidiary said its iPaq business will continue to be part of the personal systems group, unit general manager Bernadette Nacario told BusinessWorld. "In the Philippines, the iPaq business will continue to be part of [personal systems group] as it compliments with the other [personal systems group] offering. We will continue to expand our coverage for both the consumer and commercial space through our resellers and telco alliances," she said. HP has Microwarehouse, Inc. as its sole local distributor for iPaqs. Microwarehouse sales manager Cecilio Tuanquin Jr. said the iPaq line is split into two segments -- the personal digital assistant (PDA) and the converged device with iPaq models that can blend voice capabilities with contacts, calendars and internet connectivity. The iPaq PDA has five product models that starts at P17,950, while the iPaq converged device has two models priced at P39,000 and P42,000, respectively. For the two iPAq converged device units, Microwarehouse has sealed bundling deals with telecom providers Smart Communications, Inc. and Globe Telecom, Inc. Mr. Tuanquin said the entry of the two iPaq converged models in 2004 resulted in the sudden increase in sales estimated at 30% to 40% from the previous year, in the otherwise flat market. "So it’s not really an issue of pricing," he added. "Even those outside the corporate market who have money buy iPaqs. And slowly it is becoming a lifestyle must-have." Microwarehouse is yet to tap mobile phone retailers for iPaq where it will be sold side by side with regular mobile phones. At present, iPaq resellers include IT and corporate retailers.