Microsoft to unveil new handheld computers to rival Palm

SEATTLE (AP) -- Look out, Palm. There's a new organizer in town. <br><br>Software giant Microsoft Corp. and three computer manufacturers are betting millions that their handheld organizer can become

Wednesday, April 19th 2000, 12:00 am

By: News On 6

SEATTLE (AP) -- Look out, Palm. There's a new organizer in town.

Software giant Microsoft Corp. and three computer manufacturers are betting millions that their handheld organizer can become a direct challenge to Palm Computing Inc.

The Pocket PC, set to debut today, represents Microsoft's third try at building a successful handheld device, a market the company has failed to win over.

This time, Microsoft believes it and its partners have a device that will give market leader Palm a run for its money. The new handheld organizers will not only keep appointments but will play music, record sound, balance checkbooks and surf the Internet.

"People joke that it takes Microsoft until Version 3 to get something right," said Ben Waldman, Microsoft's vice president in charge of mobile services. "Well, this is Version 3 and we got it right."

In addition to a datebook, calendar, calculator and memo pad, the Pocket PC will include a slimmed-down but useable version of Internet Explorer, an e-book reader that uses Clear Type technology, a digital voice recorder, and a Windows Media Player for music and video files.

With additional plug-in hardware, the various models -- built by Compaq Computer Corp., Hewlett-Packard Co. and Casio Computer Co. --also will support wireless Internet connections and have additional memory storage.

Priced between $499 and $599, the Pocket PCs are at the high end of the market for hand helds that synchronize with personal computers.

"We're still a little high, but we give a little extra functionality," said Steve Ballmer, Microsoft's president and chief executive. "I feel very good about where we are with this."

Microsoft executives said the biggest plus for the Pocket PC is that it can run a number of programs simultaneously. For example, a user can listen to MP3 music files, play a video game and look up a phone number all simultaneously.

Palm Computing, recently spun off from 3Com Corp., has no public plans to substantially improve its hardware or software. That could be a serious problem as other hardware companies continue to meld personal organizers with digital music players, pagers and cellular phones.

"Palm ought to be running scared," said Michael Gartenberg, a senior analyst with the Gartner Group.