Palm Treo 650 - Cingular - Product Advisor

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Product Advisor

                      Palm Treo 650 - Cingular
                      Smartphones in Mobile Devices - U.S.

                                     Avi Greengart
                                     Principal Analyst, Wireless Devices
                                     Brad Akyuz
                                     Analyst, Mobile Wireless North America

                                                   Contents

                                                    Product Assessment Summary
                                                             Current Perspective

                                                    Product Strengths & Weaknesses
                                                    Product Metrics
                                                             General
                                                             Pricing
                                                             Device Description
                                                             Technology
                                                             Displays
                                                             Camera
                                                             Video
                                                             Messaging
                                                             BREW/Java
                                                             Connection
                                                             Other Features

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                                                                                                            Competitive response
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                                  Product Advisor

                              Palm Treo 650 - Cingular

                                Summary
        Analyst:
  A. Greengart, B.
       Akyuz
                              Current Perspective: Very Threatening
     Date Updated:    We are taking a strongly positive stance on Cingular’s launch of the Treo 650, which offers the
 February 10, 2005    most balanced compromise between voice functionality/form factor and a range of secondary
   Product Class:
                      functionality, including messaging, PDA, and media playback. The Treo 600 was the first
  Smartphones in
                      converged device with a phone form factor that crossed the “good enough” threshold for use as
Mobile Devices - U.S. a phone, PDA, and messaging device (a VGA camera was also included, but image quality was
                      terrible). The Treo 650 builds on the 600’s success without tilting the functionality towards any
                      specific user set – though the broad range of features definitely lends itself to consumer-initiated
                      purchases, not strictly enterprise sales. The phone form factor and one-handed user interface
                      are unchanged, but improvements for voice include “call” and “end” buttons, a removable
                      battery, Bluetooth, and a configurable side button clearly intended for PTT applications. PDA
                      and Web browsing functionality is enhanced with EDGE support, slightly improved software,
                      a dramatically enhanced high resolution screen (from 160x160 to 320x320), and a faster Intel
                      processor. Battery life on the GSM version is much better than with CDMA, and the quad band
                      radio means the 650 can be used worldwide, not just in the U.S.
                              Sprint had an exclusive on the Treo 650 for two months – missing the holiday sales season
                              – but Cingular is still getting the popular smartphone well before Verizon. The Web and e-mail
                              capabilities are well suited to Cingular’s national EDGE network, though at $44.99 per month
                              for unlimited usage, Cingular is still pricing the service for business accounts. Despite the high
                              pricing, use of the Treo 650 as an EDGE modem over Bluetooth will have to wait for Dial Up
                              Networking support, expected a few months after launch.
                              Messaging is improved with slightly better key spacing and an improved messaging client. Full
                              support for IMAP and ActiveSync with Exchange 2003 should help palmOne compete with
                              RIM, allowing enterprises running Exchange 2003 to use Treo 650s instead of BlackBerry devices
                              and additional enterprise software from RIM. Improvements were made to the camera optics, but
                              resolution remains at VGA level, making imaging the least appealing aspect of the unit. The Treo
                              650 is making inroads into media playback as well. Real’s media player software is included, and
                              the headphone jack has been upgraded to a standard ¾” size; therefore, with the addition of an
                              SD card, the Treo can also take the place of a flash music player.

                                Strengths & Weaknesses

                              Strengths
                              • The Treo 650 remains the best balanced smartphone on the market. PalmOne’s one handed user
                              interface makes the device’s powerful functionality accessible, and the PC-sync friendly Palm 5
                              OS is appreciated by PC-centric U.S. consumers. The Treo 650 has a slightly better user interface
                              than comparable Windows Mobile smartphones, slightly more intuitive PIM usability (e.g., fewer
                              clicks to set up a recurring appointment), and with Dataviz’s included Documents-To-Go, more
                              compatible Office integration. And as a Palm OS 5 device, the Treo 650 allows users to extend its

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       Report:              functionality with the most extensive and often exclusive library of third-party applications.
                            • Cingular is launching the Treo 650 $100 below Sprint’s initial pricing after incentives. At $399
Palm Treo 650 -
   Cingular                 with a two-year contract, Cingular’s pricing is not much above a high-end PDA, and should be
                            attractive to consumers purchasing the device for mixed personal/corporate use.
                            • EDGE support keeps Cingular ahead of Sprint and Verizon in terms of Treo connectivity
                            speeds. The CDMA version supports 1xRTT but is not expected to support Verizon’s EV-DO
                            network.
                            • Full support for IMAP and ActiveSync with Exchange 2003 should help palmOne compete
                            with RIM, allowing enterprises running Exchange 2003 to use Treo 650s instead of BlackBerry
                            devices and additional enterprise software from RIM.
                            • Non-volatile memory should have been mandatory on every PDA and smartphone; it makes a
                            welcome appearance here, even if total available memory has been reduced slightly from the Treo
                            600.

                            Weaknesses
                            • The Treo 650’s e-mail experience is still not as good as with a dedicated messaging device such
                            as RIM’s BlackBerry 7730. The keyboard is compromised by being squeezed into a phone form
                            factor; despite improvements over the Treo 600, the Treo 650 is still difficult to use for those with
                            large hands.
                            • Other smartphones entering the market in this price range have megapixel cameras. Consumers
                            who prize imaging already have several megapixel devices to choose from, some at considerably
                            lower price points.
                            • In order to move to non-volatile memory, palmOne reduced the actual usable memory below
                            32 MB; to compensate, PalmOne is providing 128 MB SD cards. However, heavy Treo 600 users
                            looking to upgrade who have applications that won’t run off of SD will be disappointed.
                            • The Treo 650 includes Bluetooth, but not WiFi, which would have enhanced Web surfing,
                            messaging, and other PDA activities in hotspots, corporate campuses, and areas with poor EDGE
                            coverage. HP’s 6315 is offered by T-Mobile in the same price range as the Treo 650, and has both
                            Bluetooth and WiFi support built-in.

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© 2005 Current Analysis Inc. All rights reserved.
For more information, please call +1 703 404 9200, toll-free +1 877 787 8947,
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                                                                                                                          levels the playing field...
                                                                                                                          Competitive response
                                                                                                                             is about winning

  Product Metrics

Product: Palm Treo 650 - Cingular
 General                                               Value                    Main Display -- Height (in pixels)                   320
 Manufacturer                                        PalmOne                    Main Display -- Size (diagonal, in                  2.58
                                                                                inches)
 Phone Model                                          Treo 650
                                                                                Main Display -- Number of Colors                   65536
 Carrier                                              Cingular
                                                                                Main Display -- Screen Type                   LCD/TFT (Color)
 Prepaid (No, Optional, Exclusive)                       N
                                                                                External Display                                     No
 Tier                                               Smartphone
                                                                                External Display -- Width (in pixels)                N/A
 Status                                               Current
                                                                                External Display -- Height (in pixels)               N/A
 Availability-Launch Date                            Feb. 2005
                                                                                External Display -- Size (diagonal, in               N/A
 Phone Launch by Quarter                               1Q05
                                                                                inches)
 Pricing                                               Value
                                                                                External Display -- Number of Colors                 N/A
 2-Year (Web, including instant rebates)               449.99
                                                                                External Display -- Screen Type                      N/A
 1-Year (Web, including instant rebates)
                                                                                Camera                                              Value
 Prepaid (Web, including instant                        N/A
                                                                                Camera (y/n)                                         Yes
 rebates)
                                                                                Resolution (Pixels)                                 VGA
 Device Description                                    Value
                                                                                Megapixel Count                                      N/A
 Height (in inches)                                     4.44
                                                                                Zoom Capabilites
 Width (in inches)                                      2.4
                                                                                Zoom Range                                           2x
 Depth (in inches)                                      0.9
                                                                                Built-in Flash                                       Yes
 Weight (in ounces)                                     5.9
                                                                                Auto Focus                                           No
 Battery Life -- Standby Time (in hours)                300
                                                                                Self-timer                                           No
 Battery Life -- Talk Time (in minutes)                 360
                                                                                Rapid Picture Sequence
 Milliamp rating
                                                                                Sensor Module
 Form                                                   PDA
                                                                                Video                                               Value
 Push-to-Talk                                            No
                                                                                Video Record                                         Yes
 Speakerphone                                           Yes
                                                                                Video Record -- Record Time (in
 QWERTY Keyboard                                        Yes
                                                                                seconds)
 Navigation Key                                 5-way, touchscreen
                                                                                Video Record -- Frames per second
 Technology                                            Value
                                                                                Video Playback/Streaming                             Yes
 Technology                                            GSM
                                                                                Video Playback/Streaming -- Format                MPEG-4
 Band                                          Quad-band (850, 900,             Supported
                                                 1800, 1900MHz)
                                                                                Video Playback/Streaming -- Software             RealPlayer
 Data Speed                                            EDGE                     Messaging                                           Value
 Operating System                                      Palm                     SMS                                                  Yes
 Browser Version                                                                EMS                                                  Yes
 WAP Version                                                                    MMS                                                  Yes
 WIFI                                                    No                     IM
 WLAN                                                    No                     IM Protocols
 WLAN version                                           N/A                     Email                                       VersaMail, Microsoft
                                                                                                                             Exchange, POP3,
 DRM - 0MA                                               No
                                                                                                                             IMAP4, corporate
 OMA Version                                            N/A                                                                       e-mail
 Displays                                              Value                    E-mail VPN security capabilities
 Main Display -- Width (in pixels)                      320                     RIM                                                  No

© 2005 Current Analysis Inc. All rights reserved.
For more information, please call +1 703 404 9200, toll-free +1 877 787 8947,
Europe +33 (0) 1 41 14 83 14. Or visit our Web site: www.currentanalysis.com                                                                       
Competitive Intelligence
                                                                                                                    levels the playing field...
                                                                                                                    Competitive response
                                                                                                                       is about winning

  Product Metrics (Continued)

Product: Palm Treo 650 - Cingular
  BREW/Java                                            Value                    Other Features                                Value
  Brew                                                   No                     Alarm                                          Yes
  Brew version                                          N/A                     Calculator                                     Yes
  Brew client                                           N/A                     Calendar                                       Yes
  JAVA                                                   No                     Changeable Face Plates                         No
  JAVA version                                          N/A                     Games                                          Yes
  JAVA client                                           N/A                     3D Games                                       No
  Connection                                           Value                    Number of Embedded Games                       1?
  Bluetooth                                             Yes                     GPS                                            Yes
  Bluetooth Profiles/ Restrictions               Headset, Car Kit,              GPS Type
                                                 Computer, Printer
                                                                                Infotainment
  Infrared                                              Yes
                                                                                MP3 Player                                     Yes
  USB                                                   Yes
                                                                                MP3 Player -- Samples per second
  USB Type
                                                                                Multi-language
  Cable                                                 Yes
                                                                                Phone Book Entries                           99999
  Cable Included                                        Yes
                                                                                Predictive Text                                Yes
  PIM SYNC                                              Yes
                                                                                Ringtones -- MP3                               No
  Memory                                               Value
                                                                                Ringtones -- Polyphonic                        Yes
  Internal Memory                                      32MB
                                                                                Vibration Alert                                Yes
  External Memory                                       Yes
                                                                                Voice Recorder                                 No
  External Memory -- Type                         MMC/SD/SDIO
                                                                                Voice-activated Dialing                        No
  External Memory -- Amount Included                     0
                                                                                VOIP                                           No
  External Memory -- Maximum Limit                     1.0GB

© 2005 Current Analysis Inc. All rights reserved.
For more information, please call +1 703 404 9200, toll-free +1 877 787 8947,
Europe +33 (0) 1 41 14 83 14. Or visit our Web site: www.currentanalysis.com                                                                 
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