Promotions Highlight Palm-Size Strategy

Microsoft recently announced several joint promotions with partners for the Palm-size PC platform. The promotions are small, but they illustrate Microsoft’s larger plan to boost its Windows CE–based Palm-size PC against the popular systems based on the Palm operating system from Palm Computing. In particular, Microsoft hopes to enlarge both the market and its share by promoting capabilities (including Web browsing, wireless e-mail, and audio playback) that go beyond the usual functions of palm-size handhelds.

Palm-size PCs are pocket-sized, keyboardless devices that provide calendaring, task lists, address books, and utilities such as calculators and simple games (see illustration). Microsoft specifies the minimum features of the Palm-size PC hardware and supplies a basic software platform to the manufacturers who build the devices. Microsoft announced the Palm-size PC platform in Jan. 1998, with support from seven manufacturers: Casio, Everex, LG Electronics, Palmax, Philips, Samsung, and Uniden. Everex shipped the first device in June 1998. In Feb. 1999, Microsoft updated the platform to support color displays—a first for palm-sized devices. The color capability attracted four new manufacturers, including Compaq and Hewlett-Packard.