Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?

To: johnd who wrote (42582)	4/19/2000 3:15:00 PM
From: puborectalis	Respond to of 74651

Microsoft takes aim at Palm with new Pocket PC By Scott Hillis SEATTLE, April 19 (Reuters) - Microsoft Corp. (NasdaqNM:MSFT - news) on Wednesday unveiled its new ``Pocket PC', a handheld computer packed with multimedia features that places market leader Palm Inc. (NasdaqNM:PALM - news) squarely in the software giant's crosshairs. In a launch ceremony in New York's Grand Central Station, Microsoft Chief Executive Steve Ballmer showed off the new devices, which are sleeker than earlier gadgets that were cold-shouldered by consumers. ``It's an amazing time in mobile computing and we're just getting started,' Ballmer said in a statement. ``Technology is innovating at a rapid pace, and the Pocket PC is a great example of how, today, we are bringing the productivity, performance and power of a PC in a pocket-sized device to enable true anytime, anywhere access to information,' Ballmer said. The Pocket PCs are powered by Windows CE, a slimmed-down cousin of Microsoft's ubiquitous Windows operating system for personal computers. Windows CE has had a tough time gaining a foothold in the market amid grumbling that it is too big and clunky for small devices, but Microsoft is counting that a powerful suite of new features will bring it into favour with computer road warriors. The Redmond, Wash.-based company has jealously eyed rival Palm sprint off with the lion's share of the market, frustrating its attempts to expand its dominance in desktop PCs to gadgets residing in people's pockets and purses. Palm's line of popular devices have won a strong following because they do a few things -- scheduling, address logging, e-mail and memos -- very well, analysts said. It has sold an estimated 6 million devices, which range from the basic Palm III to the Palm IIIc with a colour display and the Palm VII with built-in wireless capabilities. The company was spun off by parent 3Com Corp. (NasdaqNM:COMS - news) last month. With mini-versions of Word, spreadsheet programme Excel, and Outlook for e-mail, the Pocket PC does daily tasks, too, but Microsoft is gambling that ultimately people will demand more from their gadgets. Certainly the devices are more powerful than their Palm rivals. Made by Casio Computer Co. , Compaq Computer Corp. (NYSE:CPQ - news), Hewlett-Packard Co. (NYSE:HWP - news) and Symbol Technologies Inc. (NYSE:SBL - news), they boast colour screens and at least 16 megabytes of memory, double that of the roomiest Palms. With a zippy 32-bit processor humming away under the hood, the Pocket PC can handle stereo sound, video playback and fast-paced computer games, Microsoft says. Eyeing the growing appetite for digital entertainment, Microsoft has built its Windows Media Player into the devices that will enable users to listen to songs recorded off CDs or downloaded from the Internet. Another feature is an electronic book reader that uses Microsoft's ClearType technology to make words on the screen look nearly as crisp as a printed page. The company hopes the technology will jumpstart interest in downloading and reading books through electronic devices. ``Pocket PCs are excellent business tools, but let's face it, people don't work 24 hours a day,' Ben Waldman, vice president of Microsoft's mobile devices division, said in a statement. Analysts said Palm, with its strong following and lower prices, would likely maintain its position as market leader, but could expect to see its 80-percent slice dwindle as the Microsoft-backed offerings gain traction. ``The combination of improved hardware with some really sleek software designs will catapult Microsoft right back into the handheld game, where it really hasn't been a player,' said Michael Gartenberg, an analyst with technology research firm The Gartner Group. ``Microsoft's strategy of offering consumers lots of different features and letting them decide what the killer application is really is the right path,' Gartenberg said. By the end of 2002, Microsoft could have a 30 percent share of the installed base of such devices, Gartenberg said.