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.' Microsoft's Achilles' heel is developer support. Compared with the legions of Palm developers around, Microsoft is just beginning to capture interest. Together with Microsoft and Intel, Compaq is trying to increase the number of software vendors and developers in the region. In the past year, Compaq Greater China has worked with several wireless developers, mobile operators and brokerage houses to create financial applications that would work well on the iPaq platform. Compaq's latest iPaq hand-helds come in 32 and 64-megabyte versions with 32 MB Ram running on Intel's 206-megahertz StrongARM chip. Both feature the Secure Digital memory expansion slots, which are fast becoming the industry standard. The higher-end H3800 will come with IBM's viaVoice software and support 65,536 colours on its TFT display. Another version from this series comes integrated with Bluetooth. The active-matrix display on the lower-end H3700 supports 4,096 colours. Both devices have rechargeable lithium-polymer batteries that will last 12 to 14 hours in continuous use. Battery capacity in the H3800 series is larger than the H3700. Prices are HK$3,980 for the H3700, HK$4,680 for the H3850 and HK$5,080 for the H3870 with integrated Bluetooth. By the end of this year, Compaq will ship a wireless communications expansion pack that will enable iPaq users to wirelessly receive voice and data through GSM (global system for mobile) and GPRS (general packet radio services) networks. The company also plans to build a cellphone based on 'Stinger' - Microsoft's reference design for smart phones. Customers buying an iPaq Pocket PC H3600 or H3100 before November 30 in Hong Kong can receive a free upgrade to Pocket PC 2002 Professional Edition software via a CD.