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Technology Stocks : The New Qualcomm - a S&P500 company
QCOM 176.67+1.6%3:59 PM EST

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To: Ramsey Su who wrote ()6/26/2000 1:43:00 PM
From: Ruffian   of 13582
 
Sony to offer peek at Palm-powered handheld
By Stephanie Miles
Staff Writer, CNET News.com
June 26, 2000, 8:35 a.m. PT

pc expo Electronics giant Sony plans to give computing aficionados a sneak peek at
its much-anticipated handheld at PC Expo this week, yet the company doesn't plan to
divulge many details about the Palm-like device--not even its name.

As first reported by CNET News.com, Sony will offer a glimpse at the personal digital assistant
(PDA) device at the show. But don't expect to find out how much it will cost, what type of
hardware it can handle, or even what the company plans to call it.

Instead, Sony will offer a prototype of a digital device based on
Palm's operating system, albeit with some significant technical
departures from the popular PalmPilot products. For example, the
Sony PDA will offer a dial control that allows an owner to scroll
through menu choices. In addition, the device will support Sony's
Memory Stick portable storage cards.

This first-generation PDA will also feature "digital imaging"
capabilities, Sony said without providing further details. The device
is expected to hit shelves in the United States by early fall.

"We are excited to show the progress Palm Computing and Sony
have made to date for the development of Palm OS-based PDA
with Memory Stick capability," Keiji Kimura, president of Sony's
information technology company, said in a statement.

Sony's PDA is one of many non-PC products expected to be a big
draw at this year's PC Expo show in New York. Unlike years past,
which have focused exclusively on personal computers, this year
major PC makers like Dell Computer and Compaq Computer have
been pushed aside as devices and other computing gadgets take
center stage.

Sony's PDA is expected to be the first in a family of wireless and portable products from the
consumer electronics giant. Eventually, analysts expect the company to release other
handheld products that offer wireless Internet access, one or two-way paging, "beaming"
technology that allows communication with other Sony products, and high-end digital audio and
video features.

The PC Expo preview is part of Sony's renewed push into the digital device market, after exiting
the U.S. cell phone business last year. Sony is expected initially to offer products based on
Palm's operating system, but it also has licensed Symbian's operating system for "smart" cell
phones.

The company also announced a deal with Sun Microsystems today to create Java-enabled
smart phones for release in 2001.

Sony's reputation for innovative industrial design and its experience in marketing portable digital
products like the Walkman gives the company some indisputable advantages and could provide
a shakeup to the burgeoning device market.

Palm has thus far dominated the portable market, taking around 80 percent of the market this
spring, according to NPD Intelect, which tracks sales. But Palm faces increasing challenges
from its licensees, including Sony and Handspring, which took 25 percent of the retail market
in May. Products from HP, Compaq and Casio based on Microsoft's Pocket PC operating
system have so far failed to make much of a dent in Palm's dominance.

"Considering their strength in producing high-quality consumer electronics products, I have no
doubt that Sony's entry into the PDA marketplace will spur the growth of this category," Alan
Kessler, chief operating officer of Palm's platform group, said in a statement today. "I can't wait
for the official introduction of Sony's first PDA."
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