Pocket PC maker OQO shopping for buyers

April 15, 2009 | Camille Ricketts | Comments | |

OQO, a maker of pocket-sized personal computers with capabilities similar to laptops, is looking to be bought after running short on cash. Already in talks with a few potential matches — none of which it would disclose — the San Francisco company says its acquisition should remedy its financial woes and sharpen its competitiveness.

Facing a tight capital market, OQO has postponed the release of its OQO model 2+, a pocket PC that uses Intel’s Atom microprocessor. On its web site, the company prices the 2+ units from $999 to $1,499, and says they will probably ship by May. But now its executives are saying that timing is probably too ambitious. Considering the company just presented the product in January without batting an eyelash, it seems like the cash shortage snuck up on it rather abruptly. It had been doing pretty well in that area, raising $50 million in capital from Paladin Capital Group, Azure Capial Partners, AsiaTech Management and Motorola Ventures.

But limited venture funding isn’t the company’s only problem. The market for pocket PCs in general has slowed as consumers scale back their discretionary spending. And OQO is at a particular disadvantage because, at $1,900 a pop, its model is much pricier than its competitors’. This shift has forced the company to make cutbacks, including hours for its employees, although it has yet to turn to major layoffs.

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About the Author, Camille Ricketts

Camille is the lead writer for GreenBeat. She came to VentureBeat from Google where she worked on its traditional platforms team, particularly in TV. Before that, she was a reporter for the Wall Street Journal in New York and London. Follow her on Twitter at @camillericketts, and follow VentureBeat on Twitter at @venturebeat.

With GreenBeat 2009, VentureBeat's all-star conference on all things Smart Grid, coming up in November, Camille will be expanding coverage of this exciting space. Stay up to date by following @greenbeat2009 on Twitter or by becoming a fan of the event on Facebook here.

  • Cluudy
    IF Dell doesnt buy em...who would/who could?
  • enrique
    there is a limited market, dell has no reason to buy oqo. oqo has a niche it can fill, but its a small one. those wanting just small and light and have avg computing needs, can get a netbook. those needing walkaround (actually those who need to compute while standing or moving) computing, it is a great fit; bu that is a small market. size just wont cut it.

    also throw in horrible management team, and this one ends poorly. not surprised if you met the current and former team
  • Sal_R
    Their product is pretty difficult to use as it requires you to hunt and peck with two fingers. That is just plain dumb for a full Windows computer. Where is the keyboard? That is the reason probably why they could not sell them. If someone buys the company the need to overhall the design and provide a real keyboard if they are ever to expect anyone to buy their computers.
  • VenX
    Apple should buy it with the engineers and make the ultimate pocketable Mac!
  • RobertH
    Pocket PC's are much better for a thumb computer type use. The OQO has much more power and is really geared more for full PC use but it can not do so with a thumb keyboard. What they should do is rethink the size. I'd like to it as a clamshell for it to be worth a purchase.
  • Rady
    Limited market for pocket pc's? That is rather funny the pocket pc's like what the OQO and other full desktop OS small computers so far are not really pocket pc's as far as function. Yes they now have a full desktop OS but until someone makes one that uses a touch type keyboard they are not really true pocket pc's. To me the market for a real pocket PC is huge but so far we have yet to see one built yet.
  • NancyD7
    In this economy they will not get many people interested and the few that might will look for a fire sale. I think most would agree I do not have a lot of use for a powerful PC that is only good for standing and does not have a normal keyboard that works.
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