Palm throws down the gauntlet to Windows CE

Palm has unveiled a series of handheld devices in a bid to squeeze Microsoft out of the market for portable devices.

The range includes products that build on its offerings for enterprise customers and position the company for the first time in the consumer gaming and entertainment markets.

Anne Marie Bourcier, international marketing director for Palm, said: "We've updated the operating system and improved the power and battery life to make the overall product-manageability much better."

Bourcier was confident Palm does not feel threatened in the market for portable devices by either Microsoft or its other main rival, the Symbian Alliance. She insisted: "Our market share speaks for itself." Palm claims to have 68 per cent of the global market for handheld devices with the figure even higher in Europe.

Martin Brampton, chief analyst at Bloor Research agreed Palm is the clear market leader because it makes devices that are small enough to fit in a user's pocket. Devices based on Windows CE - the Microsoft version of Windows operating system used on mobile and handheld devices - are in Brampton's opinion, too large to use so easily.

He said: "People like cosy things they can put in their pocket. We haven't seen anything from Microsoft that will challenge this."

However, Greg Levin, director of marketing for EMEA at Microsoft said that feedback from customers led Microsoft to believe that functionality, not size, was the important issue. "The resounding feedback we hear is that people want to do more - the devices may be larger, but people will move towards a higher level of functionality."

Brampton added: "Palm are trying to put competing products out to capture every end of the market. I'm sure Microsoft will be trying to get back in, but whether they can do it is another thing."

The Palm IIIe, IIIc and Vx will be available at £130, £350 and £299 respectively. For more information see http://www.palm.com .