>From the website of PC World (US edition) _______________ Simputer Handheld Expands Its Options
Linux-based device, designed to tackle the digital divide, soon will be available in higher-end configurations. John Ribeiro, IDG News Service Friday, July 19, 2002 BANGALORE, INDIA -- Sales of the Simputer, a Linux-based handheld computer designed by Indian engineers, have languished at about 150 units since the prototype of the product was ready in April last year. But Encore Software of Bangalore aims to change that with upgraded versions of the product to be launched next month. Encore is introducing at least four versions of the Simputer, according to its chairman, Vinay Deshpande. "It has become clear that one-size-fits-all does not work even with the Simputer," Deshpande says. "We need different versions of the Simputer at different price points with different features." With a target price of $200, the Simputer was initially positioned as a low-cost Internet device for rural applications that would help narrow the digital divide. New Uses Encore is now targeting new markets such as electronic government, utilities, health care, education, banking, financial services, and the manufacturing sector. It has tied up with about 10 independent software vendors who have developed applications around the Simputer for these market segments. "We still see bridging the digital divide as an opportunity for us, but we are also looking at new market opportunities where the sales cycles are typically shorter," Deshpande says. Encore is shipping 200 Simputers this month, with another 1000 units scheduled for next month. Some of these shipments are against trial orders. "We were naive to expect orders just on the description of the device," says Deshpande. "We realize now that customers both in India and abroad want to get their hands on the product, and try it out in a limited way in their organizations before placing large orders." Besides getting the devices to customers, Encore will also take them to about 400 ISVs who have downloaded the software development kit from Encore's web site, but have not had an opportunity yet to test their software on the hardware. The products are being manufactured by Bangalore contract manufacturer Peninsula Electronics, though Encore is close to signing up a contract manufacturer in Singapore and another in India, in order to handle large orders. Simputer's Story The Simputer, for SIMple comPUTER, was designed by engineers at Encore and students and academics from the Indian Institute of Science in Bangalore. The intellectual property of the device was transferred to a nonprofit organization, The Simputer Trust, and both the hardware and software were put under the open-source General Public License. Both Encore and Bangalore startup PicoPeta Simputers have licensed the design from The Simputer Trust, and have added new features and enhancements to the product. Under the licensing agreement, the licensees have to turn in their innovation to the Simputer Trust for open-source distribution only after one year of commercial production. Built around a StrongArm processor from Intel in Santa Clara, the first version of the Simputer had 16MB of flash memory; 32MB of dynamic RAM; a monochrome LCD with a touch-panel overlay; and text-to-speech support. The Simputer also included a modem, and IrDA, or Infrared Data Association, and USB interfaces. "The feedback we got from some customers is that they would be paying for features they would never use for their applications," says Deshpande. "On the other hand, there were those who wanted new features such as more memory, color display, and other connectivity options." Additional Options The new Simputer range from Encore thus attempts to meet the requirements of various market segments. The entry-level Simputer will, at production volumes, be priced at about $210, and has a monochrome LCD, 16MB of DRAM and 8MB of flash memory, IrDA and USB interfaces and audio connectors, but no modem. Some of the enhancements include a built-in battery charger, a real-time clock, and support for J2ME. The top-end Simputer, priced at about $480, has a color display, 32MB of flash memory and 64MB of DRAM, a built-in modem, and a pocket-sized cradle with a CompactFlash expansion slot for memory cards and wireless connectivity. In addition to the cradle which ships with the high-end model, Encore is also designing specialized cradles with built-in functions such as a micro printer, keyboard, and support for GSM and 802.11 wireless connectivity. The company is opening up to designers the interface between the Simputer and the cradle to encourage others to design their own specialty cradles. In the deployment of the Simputer, getting orders was a greater issue than funding, according to Deshpande. "Our focus was more on ensuring customer expectations were met, before trying to get into volume production," he says. Behind the Scenes Encore is a listed company with a long track record of design and development. The other licensee, PicoPeta Simputers, is a start-up. It continues to do software and hardware development around the Simputer, but work has slowed down due to lack of funds, according to Swami Manohar, its chief executive officer. PicoPeta was set up without venture capital funding by four designers of the Simputer from the IISc. Except for small angel investments and a $100,000 grant from South Asia Foundation of Nice, France, in September for the deployment of Simputers in a village education pilot program, the company has not received significant financial support. "We have a fair idea of the applications that will work and the business model, but to fine tune these on the field we have to seed at least 10,000 of these devices into users' hands, and for that you need deep pockets," Vijay Chandru, cofounder and director of PicoPeta said in May. Although the Indian government and other agencies have shown interest in the product, there has been a delay in funding, according to Manohar. "Venture capitalists want to see results before they invest, and for that we need to complete our field trials and show them the results," he says. Encore expects to sell close to 100,000 devices in the first year, with volumes picking up to 1 million units by the third year. Besides selling under its own brand, Encore is also working on a deal with an undisclosed large electronics manufacturer that may want to sell the Simputer under its own brand. On large volume orders, it may even consider offering custom configurations. "We are keeping our fingers crossed," says Deshpande. "But this time we think we have learned from our earlier mistakes, and have got our act together." ------------ ***GKD is solely supported by EDC, an NGO that is a GKP member*** To post a message, send it to: <[EMAIL PROTECTED]> To subscribe or unsubscribe, send a message to: <[EMAIL PROTECTED]>. In the 1st line of the message type: subscribe gkd OR type: unsubscribe gkd Archives of previous GKD messages can be found at: <http://www.edc.org/GLG/gkd/>
