Phone-Pager-Data Assistant Breaks $1,000 Barrier
BellSouth Corp. and IBM unveiled the first personal data assistant that also has cellular phone and paging capabilities priced at less than $1,000.
Called Simon, the hand-held phone, wireless fax machine, appointment calendar, clock and calculator has an initial suggested retail price of $899, officials from the two companies said during a news conference.
Manufactured by Mitsubishi Electric Corp. under license from International Business Machines Corp., Simon is the latest product to enter the budding market for hand-held data communications devices, the newest segment of the almost $40-billion-a-year consumer electronics market.
Simon is “first and foremost a communicator,” said John Clendenin, chief executive of the Atlanta-based regional phone operating company. “It was built as a communicator first and then as a data organizer.”
Several companies have launched their own PDA products, including the Newton from Apple Computer Inc., the EO by American Telephone & Telegraph Co. and the XL-7000 Zoomer by Casio Computer Co. and Tandy Corp.
AT&T;’s EO is currently the only other PDA that features built-in cellular capabilities. Unlike EO and Newton, Simon is not able to recognize handwriting. However, even with AT&T;’s recent price reductions, EO costs between $1,800 and $3,000. The Newton ranges in price from $699 to $949, although it lacks a built-in cellular phone.
Officials from IBM and BellSouth Cellular Corp., which is distributing Simon in the United States, said the companies will see profits from the product despite the aggressive pricing strategy. They declined to be specific.
BellSouth Cellular said it will introduce Simon next month in various markets in Florida. A phased rollout will move Simon into nationwide distribution by April.
The product is still awaiting approval from the Federal Communications Commission. Barring unforeseen delays, approval is expected by the time the product is introduced nationwide, Norman said.
BellSouth first displayed a prototype of Simon at the Fall Comdex Expo last year. The product was developed after a year of testing by IBM and BellSouth, said Jim Thorpe, vice president of sales and marketing at BellSouth Cellular.
