Hardware vendor targets latest iPaqs at enterprises in wake of slow computer sales worldwide

Compaq Computer, riding on the momentum that Pocket PC's software is gaining in the corporate market, has introduced in Hong Kong two iPaqs featuring Microsoft's Pocket PC 2002 operating system.

With PC sales slowing worldwide, Microsoft, Intel and PC hardware vendors such as Compaq and Hewlett-Packard are putting more effort in expanding the personal digital assistant (PDA) market in the enterprise sector.

Microsoft's new Pocket PC 2002 operating system is more enterprise-ready than PDA market leader Palm Computing's Palm hand-held series.

'We are going forward with our focus on business users as well as developing a device so consumers will want to use it,' said Franklin Sze, iPaq and portable product director for Compaq Greater China.

He said the company would participate in trade shows and push the sale of mobile devices to firms through partners.

International Data Corp said Asia-Pacific's hand-held market would grow from five million this year to 8.5 million next year. Between April last year and August this year, two million Pocket PCs were sold, mostly Compaq iPaqs to businesses. In June, Compaq achieved revenue leadership, toppling Palm.

Roberto Cazzaro, director of international strategy at Microsoft's mobility division, said: 'The low end of the market is not the interesting segment. It's certainly not where the money and the growth is.'