New PDA comes in a clam shell

By ADAM GIFFORD

Palm's new Zire handheld computer doesn't come in a box. The small white tablet will be packaged in an orange clam shell, designed to be hung on retailers' racks.

Palm Australia and New Zealand marketing manager Lesley McKnight said the packaging was to show that Zire was a consumer product, selling for under $300 and aimed at non-traditional Palm users.

The entry-level handheld computer, which sells in the United States for US$99 ($205), is aimed at students and casual shoppers who Palm hopes will find the low-cost personal digital assistant (PDA) a better way to stay organised than by jotting notes on scraps of paper.

The debut of the monochrome PDA comes as Palm, the market leader for pocket-sized computers, faces slowing demand and aims to woo those who have never considered buying a PDA.

"People see things in boxes and think 'expensive, complicated'. We want to get people over that hurdle," McKnight said.

At first look Zire is an attractive object, looking a bit like an Apple iPod, fitting the palm comfortably and with a clear readable plastic screen. It weighs only 109g, hardly a strain on the pocket.

It has a rechargeable lithium battery and comes with the Palm 4.1 operating system, meaning users can run most of the thousands of Palm applications available.

"These are consumer devices so a monochrome display with rechargeable battery is key, because it will give them weeks of battery life," said McKnight.

Where Zire could fall over is its limited memory - it is only 2Mb. This means it is unsuitable for many database-driven applications.

Those wanting more features will have to wait until the end of the month for the release of the Tungsten range. It will be the first to feature the Palm OS 5 operating system and is aimed at gadget fans and corporate workforces.

Another model with cellphone and wireless data capabilities is also expected before Christmas, to compete with Handspring's Treo.

Mal Thompson, managing director of distributor Renaissance, said Palm's total sales had increased since Renaissance took back exclusive distribution here this year.

He said the new lines - Zire and Tungsten for high-end users - should boost sales further.

"This one [Zire] will get in all the ladies' handbags. As soon as I saw it I thought 'My wife's getting one for her birthday, whether she wants it or not'."

Palm is at present splitting its hardware and operating system units into two different companies.