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April 20, 2000 (6:34 AM EDT)

Microsoft Says It Has A Rocket In Its Pocket

Microsoft Says It Has A Rocket In Its Pocket

By Aaron Ricadela ,

Microsoft competitors often joke that it takes the software giant three tries to get anything right. By that logic, the Pocket PC, introduced Wednesday, should be a hit.

Palmtops running the four-year-old Windows CE bombed because they were too large, too power hungry, and too expensive.

Microsoft (stock: MSFT) handheld PCs hold only about 15 percent of PDA sales; Palm (stock: PALM) owns nearly 80 percent. Enter version 3 of Windows CE for handhelds, slimmed down to run on smaller, more power-efficient hardware.

Microsoft upgrades and new features of CE include easier synchronization of the Pocket PC's e-mail and contact management app with Microsoft Outlook on a PC; pocket Internet Explorer that displays Web pages that fit on PDA screens; menus at the bottom of the screen, so a user's hand doesn't obscure the readout when tapping the screen with a stylus; the first shipping version of Microsoft's ClearType software for improved legibility of text on a computer screen; and the ability to play MP3 files and Pac-Man.

"I absolutely regret that we're not farther ahead in the market," said Microsoft president and CEO Steve Ballmer as he introduced the device Wednesday.

Pocket PCs from Compaq (stock: CPQ) and Hewlett-Packard (stock: HWP) are available. A color display model from Compaq, and devices from Casio and Symbol Technologies (stock: SBL) are due in June. Pricing for Pocket PCs ranges from $300 to $600, while the color Palm IIIc sells for about $450.

Enterprise developers can write apps for the Pocket PC with the same Visual Sudio tools they use to create client-server applications. Microsoft next week is expected to introduce rapid development enhancements specifically designed for Pocket PC apps, according to an industry source. On June 30, Microsoft plans to release a beta version of SQL Server 2000 Windows CE Edition, the company said.


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Ari Balogh was named to the post of chief technology officer as the companys for a "realignment" of employees.

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