Handtops, UMPC - OQO speed problem, a marketing failure

Hi All,

The OQO is widely viewed (and often criticized) as an unacceptably slow handtop, while a number of either newer larger machines or newer machines using slower CPU’s are praised for there “surprisingly good” performance, with people trumpeting there virtues and expounding at length on the good points of the designs.

While this might be due to the comparative newness of the (in particular) AMD CPU based machines versus the great old age of the OQO, I am almost sure that there are other, more important factors at work here. Here follows a thumb suck review of the negative factors affecting the OQO, and boosting the reputations of its AMD based competitors:

Age – The OQO is an old machine in computer terms. People tend to think that it is overdue for replacement. The AMD based designs are seen as cutting edge by comparison. The fact that the AMD based designs are larger than the OQO, do not always have the features, and do not perform (theoretically at least) as well as the OQO does not seem to have made any impact. The OQO is perceived as old, and therefore in need of replacing.

Price – The OQO is expensive in pure dollar terms . It is often (unfairly) compared with the less expensive UMPC’s, and the AMD based handtops are “cheap” alternatives. While it is impossible to quantify “Bang for your buck” in such a niche market, it could be argued, if size + features are the most important criterion, that the OQO still offers the best value for money of the current crop of handtops. Of course, size + features is not the only criterion, and for many not even the most important, so the OQO remains seen as an “expensive” device. This should be used as a positive marketing point, and OQO should not have permitted the perception of "expensive", but rather have punted "exclusive"!

Widespread availability – The OQO has been around for a long time, and a comparatively large number of people have bought OQO’s over the years. This includes a vocal minority who’s unrealistic expectations have tarnished the units image. OQO have been bad at countering this unfortunate trend, and in this respect, their marketing thrust has left them open to unfair criticism due to skewed or unrealistic expectations.

Comparison with laptops – With its sliding screen, thumb keyboard and Windows XP OS, reviewers have one and all classed it as a laptop, and then gone on to compare it to such. This is an unequal race at best, and a sign that as yet the general public is not educated about handtops. The OQO was and remains almost in a class of its own. It might be argued that any publicity is good publicity, and those of us who need or want such a machine will read between the lines. This is only true of the niche market of handtop enthusiasts. In order to sell the OQO to a larger market, it is necessary to alter the perception about the machine, and the expectations of what it can do and where its strengths lie. You do not see the iMate cell phone compared with a laptop, even though it has a keyboard etc. It is classed as a cell phone, and compared as such. The OQO should at best be compared to the OQO, at worst to PDA’s. (This is in essence true of most of the smaller handtops, but applies particularly to the OQO because of its size.)

Great industrial design – The OQO looks like it should perform so much better. It’s clean lines and functional shape, it’s inclusion of all the essential elements of a laptop, and the quality of its finish lead one to anticipate a stellar level of performance. This is a great strength that is also a great weakness. It should have been recognized and the marketing campaign adapted to compensate. Perhaps a slogan such as “The gem of pocket computers” would have helped.

1 GHz CPU – A great, and at the time necessary sales device, the 1 GHz clock speed of the Transmeta Crusoe CPU is the biggest disappointment of all. Even when one knows better, one expects a higher level of performance from a 1 GHz CPU. Even before the demise of Transmeta in the CPU industry, it should have been recognized that the 1 GHz rating of the Crusoe CPU was misleading, and this should have been downplayed at all costs. Again, marketing should have targeted the concept of “Adequate power and full functionality” rather than pushing the 1 GHz CPU’s performance. When the OQO was announced, a laptop with a 1 GHz CPU was pretty top of the line. The OQO could never compete, and should never have tried.

All the above, except price which is inevitable and should be expected from a “Bouquet” manufacture, are factors that should have been taken into consideration by the OQO marketing team. The OQO sales thrust should have changed pace and direction to meet the changing environment, rather than sticking to the original XP machine for every occasion theme. High pricing in a niche market can be a positive factor. Exclusivity has its own rewards.

From a purely analytical point of view, based on the current offerings in the handtop space, and taking the OQO’s legacy out of the calculations, were OQO to have placed the model 1+ on the market today as a first offering, at its current price and specifications, it would probably be a runaway best seller. It would have its detractors, and it would inevitably be compared to the Sony UX. But it would survive the comparison based on its “incredible” size and functionality, if OQO were to emphasize the one point that they have never sufficiently exploited – that in real terms, the OQO is in competition with only itself, it holds as yet an unique niche in the market.

OQO’s coining of the uPC label, instead of using a more recognizable term like handtop or pocket computer has backfired on them. The term uPC or Ultra PC implies things that the OQO is not good at, while in many ways overlooking its great strengths.

The entire computer industry owns OQO a debt of gratitude. They pioneered the pocket computer, and are still the only company to have produced a full XP machine of that size. Others, notably the Vega and Sony UX, have come close, and we will no doubt see more machines in this space in years to come. But as things stand at present, the only real opposition that OQO has is from OQO. If they get their marketing right, and release the next model into the correct environment, they will have once again set the bar very high. Now if only they could sell that concept!