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The Pocket PC was fi rst introduced in April 2000, with much fanfare and quite a few fi ngers crossed. Its immediate predecessor, the “Palm-sized PC,” was not a commercial success, and Microsoft invested quite a bit of time, talent, and money in redesigning the operating system and software that powered the device. Equipment manufacturers like Casio and HP had invested in redesigning the hardware. The question remained: would these efforts translate into sales?

The efforts did translate into sales, and by the time the second version of the Pocket PC operating system and applications was introduced in October 2001, Pocket PC manufacturers had made significant gains in both consumer and enterprise markets. However, until early 2002, Pocket PCs continued to be relatively expensive devices, priced at over $500 each. And while power users didn’t balk at that, price-conscious consumers and enterprise users were still dragging their feet on significant purchases.