Buyers see cheaper PDAs

Firms will have a wider choice of low-cost handhelds with forthcoming Pocket PC models from Dell and HP selling for less than £200. And further low-cost models are likely from other vendors using a new concept design from Microsoft and Samsung.

Dell's Axim X5 will come in two versions: a 400MHz model with 64MB memory, and a 300MHz model with 32MB. Both will ship in the UK in February. HP's iPaq 1910, available now in the US, is a slimline model with a 200MHz chip and 64MB of memory. All three are based on Intel's XScale processor and have colour displays.

The monochrome Microsoft/Samsung design offers a blueprint for budget Pocket PCs to compete with sub-£200 Palm-based models. Devices based on the concept could ship within six months, said Microsoft. They will join Pocket PC handhelds announced by NEC, ViewSonic and Toshiba.

HP iPaq 5450

HP is also today introducing a high-end Pocket PC model for enterprise customers. The iPaq 5450 features integrated wireless LAN and Bluetooth and a built-in fingerprint scanner for access control.

Lacklustre sales have forced handheld makers to offer better and cheaper designs. Analyst firm Gartner Dataquest said vendors have struggled to find buyers in Western Europe for most of this year. Only aggressive price cuts in the last quarter, in anticipation of new product launches, succeeded in boosting sales by 15 percent year on year in the third quarter, following four quarters of decline.

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