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Handheld PC demand is huge

Compaq suffers delays through over-demand

Compaq has confirmed that supply shortages are holding up sales of its handheld PCs. Turns out the world was more than ready for handheld PCs. The company said demand for the new iPAQ was orders of magnitude more than it had expected.

Speaking at the World Economic Forum in Davos, Switzerland, Michael Capellas, chief executive of Compaq, confirmed that there had been delivery problems with the product. “Demand has been 25 times the rate of adoption we expected,” he said.

He explained that one component was responsible for holding up sales of the iPAQ. “It is the high-resolution screen. That has been a constraint.” LCD screens are regularly in short supply due to the move towards mobile devices and the relatvie difficulty of making them.

A spokeswoman for Compaq in the UK confirmed that the product was experiencing some supply shortages due in part to the high-resolution screen. “The problem is the same as for all TFTs [thin film transistors]–they can’t manufacture enough,” she said.

Capellas said Compaq hopes to overcome the problem within the next six months. “Over the next two to three months we will continue to face demand in excess of supply. You’ll see us close the gap over the next four to five months.”

“We have designed alternate displays, which will come into production soon, and black and white screens,” he added.


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