OQO to go vertical to fight UMPC

Less than a week after the rollout of the first UMPCs, a pioneer of lightweight portable computing has announced plans to shift its business model. OQO, which produces a 14-ounce computer that includes both a touchscreen and a keyboard, has been beset by production delays, a lukewarm market response, and turnover in the executive suite. New CEO Jay Shiveley says the company had been planning a move into vertical markets such as healthcare and sales, and that the launch of the UMPC products -- which are expected to underprice the $2,000 OQO by well over $1,000 --- had given the shift "extra weight." Shiveley expressed doubts that the UMPC could succeed in the consumer market, and sounded off with the old saw that the entry by Microsoft and Intel into the market validated it: "When the big boys start to blow air into the balloon, it starts to get big fast." He'd better hope his bubble doesn't burst if the UMPC fails.