Microsoft Corp plans to sell more software for running hand-held organizers that can double as wireless phones, demonstrating several new devices and touting a relationship with Intel Corp.
The largest software maker plans to show organizers made by Hewlett-Packard Co and a Taiwan-based computer company that can make phone calls and use its Pocket PC operating system at a wireless industry conference yesterday in the French Rivera resort of Cannes, Vice President Ben Waldman said in an interview.
Microsoft is particularly interested in selling more software for expensive, feature-laden devices that appeal to corporate buyers. Those clients are looking increasingly for so-called personal digital assistants that have wireless access to e-mail, the Internet and corporate networks and can make phone calls.
"Microsoft has to have that to fill demand," said Ken Smiley, an analyst at Giga Information Group. Microsoft, based in Redmond, Washington, plans to make its announcements at the 3GSM World Congress wireless conference.
Worldwide shipments of hand-held computers rose 18 percent to 13.1 million units last year, although sales leader Palm Inc's market share fell 9.5 percent, researcher Dataquest Inc said last week. Palm's devices run on the company's own operating system.
A recent Giga survey of large business customers intending to have employees use these devices showed that about 66 percent plan to choose hand-helds running Pocket PC, so meeting the needs of those clients is particularly important, Smiley said.
H-P's Jornada 928 Wireless Digital Assistant lets users view e-mail and Web pages, retrieve corporate data and make phone calls. The device is about the size of other H-P organizers lacking the phone features.
France Telecom SA's Orange unit will provide wireless service for the 928, due in Europe by the end of August, said John Spofford, vice president of H-P's smart hand-held appliance division. H-P also plans to offer services such as games and stock-trading programs for the devices, Spofford said. He wouldn't comment on pricing.
The HTC hand-held will be distributed by BT Group Plc, the UK's biggest phone company, in the UK, Ireland, Germany and the Netherlands in the first half, Waldman said. Microsoft hopes the device also will be on sale in the US in the first half, though Waldman declined to name US partners or discuss prices.
The devices are built around the new Pocket PC 2002 Phone Edition operating system, which adds features to let the units handle phone calls. The software ensures that the phone features don't interfere with others. If a user is playing a music video on a device, the volume drops when the phone rings, for example.
Microsoft also said it will work with Intel to create a design specification for device makers planning organizers with phone features and cellphone handsets with organizer features. It also worked on a design for such phones with chipmaker Texas Instruments Inc. Microsoft plans to announce today that Taiwan's Compal Electronics Inc (
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