Form and Function

I’ve always been a function guy. For me, the capabilities of the mobile handset are more important than the way it looks. With the introduction of devices like Apple’s iPhone, it will be difficult to sell a device based the merits of features and functionality alone.

It is all about the footprint

When you compare feature cell phones to smartphones one of the most apparent differences is the “foot print”, or the device’s form factor. Each year cell phones seem to get smaller and smaller. Every time I walk past a cell phone store and peer in the window I wonder how people avoid snapping there phones in half while talking on them. On the other hand, you have smartphones; devices that combine the features of a cell phone with those of a digital organizer. When compared with cell phones on the basis of style and price alone, smartphones seem like large, unattractive, and expensive alternatives to the sleek, attractive, and inexpensive alternatives. They are both “phones” after all, right? Why would anyone every want a smartphone?

On June 30, 2007, I’m expecting a lot of people to have a new appreciation for what a smartphone is and why they need one. Apple has an incredible capacity to not only sell the sizzle but the steak as well. If the iPod is any indication of what we are in store for when the iPhone arrives many people will be jumping into the smartphone pool. The only question I have is not if Apple’s iPhone will have an impact on the smartphone market, but rather how much of an impact? Will other smart device manufactures see an up tick in sales after the launch of the iPhone? Will it be enough to compete with other vendors on the functionality of their devices or will customers demand feature rich phones at look good and work well?

Taking form

For Palm, the bulk of Treo sales have been from corporate customers in the form of fleet purchases or “prosumers” who purchase their own phone and wireless service and use it to manage business and personal information. Until now, the current candy bar design of the Treo has proven to be popular with Palm’s customers in part because of the broad functionality of Treo smart devices. As Palm and other wireless handset manufactures move into the consumer marketplace they will need to rethink their current design strategies.

Palm has made some conservative moves toward building handsets that will appeal to customers who want devices that have an appealing form factor, good ergonomic design, and feature richness. The Treo 750, 755p, and 680 are examples of that initiative. The latest crop of Treo smartphones have internalized cellular antennas, are available in multiple colors, have a slightly slimmer body, and include enhancements to the standard user interface that make those devices distinctly Palm. Over the next year I expect the trend of adding stylistic refinements to Palm’s devices will continue. These changes will become apparent in late 2008 when the first devices that have been developed under the supervision of Jon Rubinstein who will be joining Palm as the executive chairman of the board as part of the recapitalization deal with Elevation Partners.

The challenges facing Palm will be how to address the stylistic demands from customers in the wake of the iPhone. What changes will be required to attract customers to Palm’s products who would otherwise purchase feature cell phones or Apple iPhones? For Palm, the answer may not rest in a single device.

Palm is an established player in the mobile computing market space and has discrete classes of customers to consider. When planning future devices, Palm needs to consider the handheld PDA customers, mobile professionals, and mass market consumers. Palm might be better served to release smartphones with new designs targeted at each of their established customer segments.

In conclusion

Palm has taken some positive steps to add stylistic details to the Treo product family. Speaking from the perspective of a mobile professional, I believe that the current Treo form factor works well. That isn’t to say that some additional tweaks can’t be made. It simply means that the current design has a proven track record for business customers. I support the continued inclusion of a full Qwerty keyboard and a touch screen.

I also believe that Palm’s latest product, the Foleo Mobile Companion, will open the door to changes in the Treo form factor that would not have been possible previously. For example, it could now be possible to develop alternative form factors such as a hi-res+ 320x480 Treo by shifting the keyboard to the Foleo. Additionally the Foleo could permit Palm to look at developing smaller foot print devices that have wouldn’t necessarily have a large touch screen or full keyboard.

I believe a year from now we will be looking at a whole new Treo product line up which will be positioned to help Palm reach out to all of their customer segments.

Let us know what you think the future holds for Treo form factors in the 1SRC discussion forums.