3Com remains on top of handhelds

Vendor staves off competition from rivals to hold on to its market share of almost 42 per cent in first half of 1998.

Sales of smart handheld devices will grow 45 per cent next year,et share of almost 42 per cent in first half of 1998. reaching 10.7 million units in 1999, according to market research company IDC.

3Com is expected to remain the dominant player, despite the success of Microsoft's Windows CE.

During the first half of 1998, the vendor held 41.4 per cent of this fast growing market, up from 32 per cent in the same period last year.

3Com managed to increase its share despite the launch of the Palmsize PC, a clone of its keyboardless Palmpilot device. Palmsize PCs run a version of Windows CE, the operating system that also powers the successful Handheld PCs.

'Palmsize PCs still need some work,' said Diana Hwang, analyst at IDC.

'CE needs to be simplified.'

On the other hand, she added, 3Com had been successful in lining up the support of OEMs and software developers.

The strong position of 3Com will make Steve Jobs, interim chief executive of Apple, kick himself. Last week, he revealed in an interview that he had tried to buy Palmpilot last year, but Eric Benhamou, chief executive of 3Com, refused to sell. The talks preceded Jobs' decision to end development of Apple's own handheld computer, the Newton.

On the slightly larger handheld devices with keyboards, Windows CE is becoming dominant, Hwang said, although Psion remained strong in some markets, including the UK.

Another type of smart handhelds are Windows powered mini-notebooks, based on a design codenamed Jupiter. Hwang said this type of device is likely to compete with mini-notebooks running Windows 95 or Windows 98, but the rise of lower priced traditional notebooks may limit their appeal.