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NEC enters PDA market
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November 12, 2001: 11:45 a.m. ET
First handheld computer from Japan firm marketed to businesses.
By Staff Writer Richard Richtmyer
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Handheld sales drop - Nov. 05, 2001
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LAS VEGAS (CNN/Money) - Adding its name to a fast-growing list of competitors, NEC introduced on Monday its first handheld computer, which it plans to market specifically to businesses.
The Japanese company introduced the new device, called the MobilePro P300, at the Comdex technology conference taking place here this week. It's powered by a 206 megahertz Intel StrongARM microprocessor and uses Microsoft's newest Pocket PC operating system software.
The new device also supports both compact flash and secure digital (SD) external data-storage cards. A complete unit, including a 32-megabyte SD card, USB cradle, stylus, and screen protection cover, sells for roughly $599, which is at the high-end of handheld computer pricing.
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The new NEC MobilePro P300 is aimed at the corporate market. | |
In addition to the standard personal information management, e-mail and Internet applications that come with the Pocket PC software, NEC is shipping the MobilePro P300 with several other third-party applications pre-installed that are geared to corporate enterprise users. These include synchronization applications designed for enhanced data management and recovery and a program used to securely load and run e-commerce applications.
The company also is including one year of services - including a promise to deliver replacement devices overnight in the event of a malfunction and 24-hour toll-free telephone technical support - with the purchase of each new device.
NEC executives are hoping that the enhanced functionality built into the MobilePro P300 will make it more attractive to information technology managers who are increasingly integrating handheld computing into their corporate enterprises.
"When it comes to the corporate market, we've found that users require a more customized range of mobile features than today's PDA devices can deliver, Larry Miller, NEC's vice president of marketing, said in a statement. "With this in mind, we designed a new class of corporate-focused Pocket PC."
NEC's entry into the handheld computing market and its specific focus on corporate enterprises also bodes well for Microsoft's effort to have its software supplant Palm's operating system as the dominant handheld platform.
PocketPC grabbing market share
First introduced about a year and a half ago by a handful of hardware manufacturers, Pocket PC-powered devices have become increasingly popular. And while Palm remains the leader, its market share, in both
hardware and software, has been dwindling in recent quarters as it faces increased competition from other manufacturers, such as Handspring and Sony, whose products run the Palm operating systems, as well as the ever-growing number of Pocket PC makers.
The percentage of new handheld units shipped in the third quarter shrank to 52 percent, according to high-tech research firm Gartner Dataquest. That
compares with the more than 90 percent of the market share Palm historically had garnered since it first began selling its "Pilot" devices in 1996.
For its part, Palm has been moving forward with a plan to split into two separate businesses, one that focuses on hardware and the other committed to developing and licensing the Palm operating system to other hardware makers.
Check handheld computer stocks
In addition to handheld computer makers such as Handspring and Sony, Palm currently licenses its operating software to mobile-phone makers including Nokia and Samsung. In September, Palm named David Nagel chief executive of its operating system unit, which is expected to begin operating independently by the end of this month.
Formerly the chief technology officer of AT&T and president of AT&T labs, Nagel is expected to shift Palm's focus, putting more of an emphasis on the kinds of wireless services that can be delivered through Palm-based devices and are expected to be part of its own "always on" integrated wireless device later this year.
As for Palm's hardware division, its CEO, Carl Yankowski, abruptly resigned last week, leaving the company's chairman, Eric Benhamou, to stand in as the company seeks a permanent replacement. 
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