During the announcement at Microsoft headquarters, in Redmond, Washington, Phil Holden, the group product manager for Windows CE, admitted that Microsoft is currently trailing Palm for market share in the handheld computing arena. Holden said that the re-launch of the Pocket PC, which will be manufactured by companies such as Casio, Compaq, and Hewlett-Packard, is an opportunity for Microsoft to re-establish itself in the handheld market.
New features to look for in upcoming versions of the Pocket PC will include an e-book reader, an MP3 music player, video capabilities, and an application Holden called a "transcriber", which identifies a user's handwriting when etched into the unit, converting it to text.
Holden said that Microsoft, in the weeks prior to the Pocket PC launch, will announce several alliances with corporations to provide customised versions of the handheld units, modified to each individual company's needs.
But Tim Scannell, an analyst at Mobile Insights in California, said he believes Microsoft is still peddling a consumer product.
"Improvements in the Windows CE operating system give this newest version a bit more focus, unlike the previous version when Microsoft seemed to be throwing a lot of things up against the wall to see if they would stick," said Scannell. "But with the ability to download e-books and MP3 files, (these changes) are signalling that Microsoft is targeting consumers rather than corporations."