I am not so sure ... if there are 4-5 companies bringing out UMPC's or UMPC styled PDA's, then surely its not for geeks anymore. You can bet your dollar that so many comanies will not be making products (or experimenting even) for a market whose time has not come yet.
The wince machines have always had quite a number of manufacturers making them, however it wasn't until Palm stumbled that the wince machines finally started to make headway and eventually dominate.
And there's always M$'s underhand tactics to consider. They could very well be using "marketing" dollars to bribe manufacturers to make these UMPCs even though most models never sell enough to make a profit.
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UMPC' may not necessarily mean Wince based UMPC's. Its too bad we don't see any other - but I am taking about UMPC's in a OS agnostic way - more about features and hardware.
While I know (and I indulge in it too) blaming Microsoft for market realities not agreeing with the way we see things is a natural and amusing pastime, I don't think either 3rd party mfrs or Microsoft will be spending big bucks unless there is a potential to sell it and for users to want it. Would you have though that people would go about buying $600 - $750 phones (yes mobile phones) 5 years back ? But Nokia says its N95 is its flagship product and Apple is about to make a kill in the next quarter with higher than expected (Wall street expectation) sales. Just examples.
A little bit of arm twisting on MS's behalf is true, but you can't arm-twist a whole market.
While it does take a shining product to lead the way, often times, its over several iterations of a product that market acceptance is finally achieved. That's the classic case of Wince PDA's (and I hate them). But reality is reality and more and more people are using them and smartphones.
So I don't see why the dumb masses will not accept PDA's with more features sometime in the future.
Talking about this dumb-masses term - ultimately in mass market economics, if the dumb mass market is endorsing a product , then there must be a quality to the product that is shining , irrespective of what geeks and niche-specialists think. In mass market, its the dumb masses who are the definitive specialist.