Microsoft is a long-term vision oriented company.
* The DOJ related news is a shorter term side distraction.
* Microsoft, the company got to be buying back shares here
We will see that 40 to 50 million shares have been bought
back this Q.
* If you ignore the DOJ matter for a moment, it is business
as usual with a vibrant prospect with *2000 products.
Microsoft to unveil new look for Windows CE
By Stephanie Miles
Staff Writer, CNET News.com
February 23, 2000, 7:50 a.m. PT
Microsoft tomorrow plans to reveal upgrade details for its handheld computer operating system in its latest push to make inroads in
the highly competitive personal device market.
Tomorrow at the CeBit computer industry trade show in Hanover, Germany, Microsoft will further raise the curtain on some of the improvements
it is making to the next generation of its Windows CE operating system for handhelds, dubbed the Pocket PC.
Although the software company does not actually manufacture the devices, the operating system determines what features and functions the
hardware can support, so each upgrade is a telling indication of what the computers will actually look like when released.
Also tomorrow, Microsoft will unveil the Pocket Internet Explorer, the first time the company has integrated its own browser into Windows CE.
Yet the software giant is unlikely to face the same antitrust repercussions that followed its decision to integrate its browser into its Windows 98
operating system. Unlike its dominant position in the desktop operating system market, Microsoft only holds one-quarter of the market for
handheld operating systems, according to market research firm International Data Corp.
Manufactured by major PC makers like Compaq Computer and Hewlett-Packard, as well as consumer electronics companies like Casio, Windows
CE devices have struggled to make any inroads against Palm handheld devices.
The handheld leader, which yesterday announced its first device with color displays, has focused on
simplicity and ease-of-use over fancy multimedia features of Microsoft-based devices, a message which
has been well received by consumers.
But with the introduction of a color display, as well as expected multimedia and wireless offerings from
licensees like Nokia and Sony, Palm is treading on familiar Microsoft territory, and stands the risk of
repeating some of the mistakes which analysts say have stifled the growth of Microsoft handheld users.
These include complaints about short battery life, bulky designs, and an operating system which replicates
the delays and bugs of desktop Windows, along with the functionality. Palm is especially susceptible to
these problems, both analysts and Microsoft say, because its operating system is essentially being
retrofitted to support new features.
Microsoft, finding itself in the somewhat unusual position of underdog, is cognizant of its missteps and
eager to find the right combination of simplicity and enhanced features to entice new users, according to
Brian Shafer, a Microsoft product manager.
But analysts question if the momentum that Palm has built up can be slowed to allow Microsoft some
ground, especially as Palm licensees like Handspring gain a toehold in the market.
"We've been saying all along that people want to do more," Shafer said, referring to Microsoft's belief
that devices should be as fully functional as possible, rather than pared-down and simple.
Shafer argued that Palm's market share is a result of existing presence in retail stores, lower price points
and market inertia. "Clearly, the market is moving in our direction," he said, referring to Palm's new
strategy of creating more multimedia devices.
So far, Microsoft seems confident its revisions will click with customers. At the Consumer Electronics Show in Las Vegas in January, the
company showed off improvements to its product, including a new E-Book reader with easy-to-read type, and announced that Windows Media
Player will be integrated into the Pocket PC, allowing users to listen to digital music.
"Everything with Windows CE is on hold, while they're waiting for the release of Pocket PC," said Brian Phillips, an analyst with market research
firm ARS, arguing that it is far too early to count Microsoft out.
"They're starting to flush out old products from the (retail) channel, gearing up for Pocket PC. When Microsoft announces and rolls out in volume
this summer, and you have the color Palm vs. the new version of CE, that's going to be the real test."
This week at CeBit, Microsoft will showcase its Pocket Internet Explorer, which shrinks Web content to fit on the small display of a Pocket PC.
Eventually, when Windows CE devices become more focused on wireless Internet access, Pocket IE will help users browse the Web without
wires, Microsoft's Shafer said.
Although German networking partner Siemens will likely be showing its wireless device based on Windows CE at CeBit, Microsoft has no plans
to introduce any new wireless technology soon, Shafer said. The company has been developing a wireless option for its handheld devices, along
the lines of the Palm VII wireless device, but does not want to simply attach a wireless radio to a PDA or vice versa, he said.
"It's still in development," Shafer said. "There will be phones and PIMs (personal information managers). It's not going to be a pure convergence,
and we're not getting into the phone business."
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