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Strategies & Market Trends : MDA - Market Direction Analysis
SPY 670.97+0.1%Nov 7 4:00 PM EST

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To: Doug who wrote (81640)8/31/2001 5:20:57 PM
From: JBH  Read Replies (1) of 99985
 
New PDAs promise big changes

08/31/2001 - Updated 08:16 AM ET
By Leonard Fischer, Gannett News Service

If you've been considering buying a new personal digital assistant (PDA) or
wireless phone - either for the first time or as an upgrade - you might want
to hold off, at least for a little while. Granted, prices on current models are
especially low right now thanks to aggressive promotions and price
reductions by Compaq, Handspring and Palm, but that's because a whole
array of new products are on the way and these companies want to move
existing inventory. The rumor mill is buzzing with news about emerging
devices, and, more than ever, it appears that the convergence between the
mobile phone and the PDA is the wave of the future. Let's take a look at
some choices that will be available soon.

Handspring and Palm this week both received FCC
approval for new wireless PDAs. While little is known
about the Palm i705, it's expected to be the replacement for
the Palm VIIx. At least one PDA site has reported that it
will use CDMA technology, which is faster than the speed
of the current BellSouth network that the Palm VIIs use, but other reliable sources say it will
continue to work on the BellSouth system. Regardless of the network, the device is expected to be
smaller, but more expandable, than the Palm Viix Of course, Palm has kept all news of the i705's
development under tight wraps, but it's expected before the end of the year.

More is known about Handspring's new wireless devices thanks to InfoSync, a Norwegian Web
site (www.infosync.no/en/) that's published details and photos. Apparently, two models will be
available - the Treo g180 and the Treo k180. Both work as wireless phones and PDAs, and they
both will operate on CDMA and GPS networks. From the photographs, they appear to be very
sleek, and feature flip-up lids that protect their screens. So what's the difference between the "g"
and "k" models? It's just one small but amazing detail. The "k" model drops Graffiti handwriting
recognition, which always has been included with every Palm model, and replaces it with a
keyboard you can type on with your thumbs. From the photos on the InfoSync site, the keyboard
looks virtually identical to the one found on the popular Research in Motion (RIM) wireless
messaging devices. The "g" model retains Graffiti for folks who are comfortable with handwriting
recognition. Both devices are expected to ship with 16 megabytes of memory, another first for
Palm PDAs. I checked with my Handspring public relations contact, but he said the company can't
confirm any of the details InfoSync has reported. Donna Dubinsky, Handspring's CEO, has told
the press to expect new models by year's end.

InfoSync also is the first site to show some next generation PocketPCs from Hewlett-Packard.
They're going to be announced officially next week, as is the introduction of the PocketPC 2002
operating system, which is supposed to more closely resemble the forthcoming desktop Windows
XP operating system. Priced comparably to today's high-end PocketPCs, the sleek HP Jornada
560 line will include either 32 or 64 megabytes of memory. What's more, the rumor mill says these
devices might include basic voice recognition technology so you'll be able to interact with your
handheld by speaking commands to it, such as "Open appointments." They're also supposed to
make wireless connections easier to use.

The recent announcement that Sony and Ericsson will be merging their mobile phone and handheld
computing operations is another indication that convergence is on the way. Sony brings to the table
its powerful Clie line of PDAs, while Ericsson provides advanced wireless phone technology. No
products based on the new partnership are expected until 2002.

And finally, I saw my first live demonstration of the mysterious Danger device this week. It's a
new handheld platform that also blends voice and PDA functions. I can't say much more until the
device is introduced next week at the DemoMobile show in La Jolla, Calif., except that it definitely
looks cool, though it won't be available until first quarter of next year.

Next week: More on the PocketPC 2002 operating system.
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