Palm's spring collection launched with cameras and Wi-Fi

Handheld specialist Palm has released new versions of its Tungsten and Zire models for business users and consumers.

The Tungsten C joins a stable of Tungsten devices with the suffixes T and W and features a built-in keyboard, more memory and - for the first time in a Palm device - integrated Wi-Fi wireless networking connectivity. It will have a typical off-the-shelf price of £399.

The Zire 71 joins the successful Zire entry-level device launched last autumn and is focused on younger users craving multimedia applications. As such, it is the first Palm-manufactured device to feature a built-in camera and will retail for about £249. Sony, a Palm OS licensee, already offers a model with integrated camera.

The devices include the latest version of the Palm operating system, 5.2, as well as bright active-matrix transflective screens with resolutions of 320 pixels by 320 pixels. The Tungsten C comes with 64MB of memory and uses a 400MHz Intel XScale handheld processor. The Zire 71 comes with 16MB and can play digital audio files. Both devices come with Secure Digital expansion slots for additional storage.

Tony Lock, chief analyst at Bloor Research, was bullish about Palm's move towards Wi-Fi. "People want this type of connectivity - it's easy," he said. However, he warned that common concerns of security and manageability have to be laid to rest in IT departments.

He added: "Every organisation will have to start managing wireless connectivity properly [but] over the next 18 months there won't be many businesses not using it."

Worldwide shipments of handhelds fell by 9.1 per cent in 2002, to 12.1 million units, compared with 2001. While Palm handily remains in the top spot for market share, with 39 per cent of the worldwide market, the company's revenue for the current quarter is expected to come in lower than the previous year.

Some experts have questioned whether businesses want to invest in PDAs, which are often seen on a second level of 'nice-to-have' technology behind laptops and other gear.

Time Mahne, Palm UK country manager, told silicon.com: "For a large group PDAs do offer a strong alternative to notebooks."

Palm has this week been stressing the email and other security of its new models and in an effort to sell more units Mahne said it is recruiting more business, solutions and technology channel partners.

News.com's Richard Shim contributed to this story.