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Microsoft lends hand to China palm computers

Reuters Story - November 27, 1998 04:55

Jump to first matched term

By Bill Savadove

SHANGHAI, Nov 27 (Reuters) - Microsoft Corp on Friday unveiled Chinese-language software for palm-sized computers, giving the U.S. software giant the
upper hand in the battle for China's market.

The hand-held computers will use a Chinese version of Windows CE, a slimmed-down cousin of Microsoft's ubiquitous Windows operating platform, company
officials said.

Some 10 firms planned to use the software platform, including Philips Electronics NV and China's Legend Holdings Ltd , paving the way for widespread introduction
of palm-sized computers in China before year-end, industry officials said.

"This market does look very good," Sean Zhang, director of the Microsoft (China) Research & Development Centre, told reporters.

"From an economic development viewpoint, we feel more people are requesting an 'Internet lifestyle' and the ease of obtaining information."

China now boasts some 1.2 million Internet users and that number is expected to leap to 5.0 million by 2000, official media have said. Personal computer sales in
China are expected to hit four million units this year, they said.

Microsoft officials said China's thirst for the latest technology would support the market for palm-sized computers and other products using Windows CE.

Companies using the Microsoft software will compete head-to-head against 3Com Corp, which has said it would bring its market-leading PalmPilot to Asia this
year.

"PalmPilot had some success in the United States, but in China we are very confident we are going to make them work very hard," Zhang said. "We do think we
provide the best product."

Philips will introduce its Chinese palm-sized computer using Windows CE by early December while Taiwan's LEO Systems Inc will launch by the end of this year,
officials said at a conference hosted by Microsoft.

LEO would offer a simplified Chinese character version in China and traditional characters in Taiwan and Hong Kong priced at around $350 for the basic model,
marketing director Richard Brown said.

"In the long term, China will be the big market," he said. "Initially, Taiwan will grow very fast as well since there's a lot of interest in this product."

Chinese computer giant Legend said last month it would introduce its version in December priced at around $420.

Other manufacturers planning to use Chinese Windows CE software included Japan's Casio Computer Co Ltd and Hewlett Packard Co of the United States,
Microsoft officials said.

The companies would pay Microsoft royalities based on the number of units sold, they said, but declined to give further details.

Palm-sized computers using the software would have features including a note taker, calendar, address book and dictionary for Chinese-English/English-Chinese,
Microsoft said.

They could also support e-mail and an Internet browser, and synchronise information with computers that have Windows CE installed, it said.

Copyright 1998 Reuters Limited. All rights reserved. Republication or redistribution of Reuters content is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in
the content, or for any actions taken in reliance thereon.

%CN %ASIA %TW %US %DPR %ELC %NL MSFT PHGS 0992.HK 6952.T HWP V%REUTER P%RTR



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