SEATTLE — Microsoft Corp. and three partners are unveiling a new generation of hand-held organizers that will not only keep appointments but will play music, record sound, balance checkbooks and surf the Internet.
The software giant and three computer manufacturers are betting millions on a direct challenge to the Palm computer.
The Pocket PC, set to debut Wednesday, represents Microsoft's third try at building a successful hand-held device, a market the company has invested millions of dollars in with disappointing results. This time, Microsoft believes it and its partners have a device that will give market leader Palm Computing Inc. a run for its money.
"People joke that it takes Microsoft until version three to get something right," said Ben Waldman, Microsoft's vice president in charge of mobile services. "Well, this is version three and we got it right."
In addition to a datebook, calendar, calculator and memo pad, the Pocket PC will include a slimmed-down but usable version of Internet Explorer, an e-book reader that uses ClearType technology to make it easy on the eyes, a digital voice recorder, and a Windows Media Player for music and video files.
With additional plug-in hardware, the various models — built by Compaq Computer Corp., Hewlett-Packard Co. and Casio Computer Co. — also will support wireless Internet connections and have additional memory storage.
Priced between $499 and $599, the Pocket PCs are at the high end of the market for hand-helds that synchronize with personal computers. Palm introduced the first such product to gain widespread popularity in March 1996. The Palm IIIc, the first Palm organizer to include a color screen, sells for about $449.
"We're still a little high, but we give a little extra functionality," said Steve Ballmer, Microsoft's president and chief executive. Ballmer said he is already using the product for notes, e-mail and a little bit of video golf between meetings. "I feel very good about where we are with this."
That feeling is a first for Microsoft's hand-held efforts. Previous versions of the hand-helds, running on the Windows CE operating system, were slow, expensive and unpopular. The old screens looked like a miniaturized Windows 95 interface, complete with the same icons and "Start" button, and they burned through battery power quickly.
On the new Pocket PCs, the interface looks more like Palm's, complete with larger icons and fewer pull-down menus. Most functions are accessed with a single touch. Battery life has improved somewhat as well.
There are still some technical issues with the Pocket PC. Some Palm customers may have trouble transferring data from older Palm organizers to the new Pocket PCs.
Only one of the three computermakers has included software that allows Pocket PC owners to beam data, via infrared technology, between the Pocket PC and Palm Computing's devices. And cheaper versions of the Pocket PC will barely have enough memory storage for all the on-board software.
However, even Palm's premier models don't feature the perks of the Pocket PC. For example, the only device that offers any kind of music player is Handspring Inc.'s Visor, built on the Palm operating system. The Visor, introduced last November, requires a plug-in module for its music player.
While the Palm IIIc offers a color screen, few other improvements were made to the basic Palm software. The Palm VII, also $449, has a built-in wireless Internet connection, but it only allows for limited access to a handful of Web sites.
Microsoft executives said the biggest plus for the Pocket PC is that it can run a number of programs simultaneously. For example, a user can listen to MP3 music files, play a video game and look up a phone number at the same time.
Palm Computing, recently spun off from 3Com Corp., has no public plans to substantially improve its hardware or software. That could be a serious problem as other hardware companies continue to meld personal organizers with digital music players, pagers and cellular phones.
"Palm ought to be running scared," said Michael Gartenberg, a senior analyst with the Gartner Group.