Danger has taken an important step toward getting out of the hardware business with an agreement, announced this week, with Sharp Corporation. Danger makes the hiptop device, a unique smartphone aimed at consumers that allows users to make phone calls, surf the Web, send and receive e-mail as well as SMS messages, among other features. It is sold by T-Mobile as the Sidekick.

Under this partnership, the two companies said they will work together closely on the development, manufacturing and distribution of hiptop devices in North America and Europe. Based upon the license of Danger's hardware reference design and client software, Sharp will manufacture, market and distribute jointly-developed products that connect to Danger's service infrastructure ­ Danger's hosted client-server technology which optimizes the transfer of data over wireless networks.

According to the companies, the business collaboration between Danger and Sharp meets the needs of both companies. Danger has long stated an interest in securing major branded manufacturers to manage the hardware aspects of its business, and to enable the company to focus on its software and services for wireless carriers.

"This is a major milestone for Danger, and the beginning of a long-term and mutually-beneficial relationship with Sharp," said Hank Nothhaft, Chairman and Chief Executive Officer of Danger, Inc. "Sharp's extensive history of manufacturing excellence, combined with Danger's innovative software and services will lead to very compelling offerings for wireless carriers and their customers in the coming months and years."

Sharp has recently expanded its mobile handset business in Europe and is focused on continued expansion in both European and North American markets.

"We are very pleased to be joining forces with a company like Danger that has created such ground-breaking technology in the mobile space," said Mr. Hirohide Nakagawa, Group General Manager of Information and Communication Systems Group, Sharp Corporation. "Sharp's advanced unique technologies in LCD and Optoelectronics with its focus on product quality will be combined successfully with Danger's software and services to help take our future products and services to the next level." While working closely with Sharp on hardware, Danger said it will advance its core software and service business through developing and offering value-added content and applications via its Premium Download Manager (also called "Catalog").

The Future of hiptop

Danger recently released a new version of its hiptop smartphone that is nearly identical to the current model, expect that it has a tri-band GSM/GPRS 900/1800/1900 radio rather than a single band GSM/GPRS 1900 MHz radio.

This new model is not the expected third generation hiptop unveiled back in February, at the 3GSM World Congress. That model was also confirmed last month by the Federal Communications Commission (FCC) with some images on its website as part of the standard approval process all wireless devices must go through in the United States.

T-Mobile offered the first Sidekick with a monochrome display back in the Fall of 2002. The device allowed users to surf the Web, send and receive email, chat using AOL Instant Messenger service, play games, take and e-mail mobile snapshots and talk on the phone with an external headset, among other more standard PDA functions, such as a calendar and a note taking application. It featured a QWERTY thumb-keyboard and a swivel display.

The second generation hiptop/Sidekick appeared over a year ago. The main advantage of this device over the initial model was a 240 x 160-pixel resolution and 65,536 color screen.

It looks like the third generation hiptop will have the same resolution screen at the same color depth. However, initial rumors about the device said the display would be brighter and clearer than the one found in the current model.

The hiptop II should also maintain the same swivel display design, which reveals the thumb-keyboard, as well as the same width and length as the current model. It'll be about a quarter-inch thinner and should integrate a digital camera and a flash.


Back of hiptop II

Older hiptop models use an attachment to add camera functionality. Integrating a digital camera into a mobile phone, let alone a smartphone aimed at consumers, has become par for the course in the wireless industry.

It appears the smartphone will lack Bluetooth, which means users won't be able to use the hiptop II with Bluetooth enabled wireless headsets and other peripherals, such as printers. The GSM/GPRS smartphone should deliver Web access at up to 144 kbps.