Global shipments of handheld computers fell 21 percent in the first quarter, as corporations and consumers shied away from the pricey pocket-sized digital organizers, a study from International Data Corporation showed.
Although powerful and small, demand for the $200 to $500 PDAs has declined in an economy that has forced both companies and individuals to rethink their spending habits.
As most enterprise customers do not regard handheld devices as a core component of their technology needs, demand softens quickly as corporate budgets are cut, IDC reported. In the consumer market, handhelds are primarily luxury items.
IDC also said seasonality, as well as concerns about terrorism, war and continued economic instability have hampered device purchases. Moreover, handheld computer vendors have failed to convince many of the more than 20 million current PDA users to upgrade to newer models.
- - - - -
Planes without pilots: Sixteen months after an experimental unmanned plane in Afghanistan made its first-ever combat kill, pilotless planes are standard in the U.S. war kit. Over Iraq, they fired on and destroyed about a dozen military targets.
Air Force controllers of unmanned RQ-1 Predators say they used anti-tank missiles to blast Iraqi air defense batteries, missile launchers, radar and an Iraqi TV satellite communications dish. Predator spy cameras allowed U.S. commanders to watch the capture of a Palestinian hijacking suspect and oversee the rescue of an Army prisoner-of-war. On another day, the spy planes foiled an Iraqi ambush on U.S. and British troops.
The unmanned aerial vehicle, or UAV, is flourishing in the U.S. military, gaining traction with top commanders far more quickly than even its biggest boosters thought possible. With no oxygen- and sleep-needing human on board, Predators and other UAVs can watch over a potential target for 24 hours or more -- then attack when opportunity appears.
- - - - -
Blurry Ballmer vision: Microsoft CEO Steve Ballmer said he did not see any clearer direction on the health of the global economy despite the quick war in Iraq, which had clouded the economic outlook for many companies.
"From what we've seen in the market we are expecting things to remain slow in terms of growth over the course of the next 12 months," Ballmer said on the sidelines of the launch for Microsoft's (MSFT) latest server software product, Windows Server 2003.
Asked if Microsoft is more exposed to the swings of the global economy because of its size, Ballmer said Microsoft is a sufficient part of the overall information technology (IT) spend, which is tied to the world economy.
- - - - -
Intel bumps up Itanium: Intel is developing new emulation software designed to speed the way its Itanium processor runs certain applications on server computers, an Intel representative said.
Intel (INTC) has spent heavily to develop the Itanium chip in order to meet the needs of faster and more powerful software. The microchip allows servers to run 32-bit applications. However, industry analysts say 32-bit applications don't perform as well on the Itanium chip as they do on 32-bit processors like Intel's Pentium and Xeon.
Intel is working with Microsoft and Linux developers to include a software emulator in their operating system software, the Intel representative said. The emulator works by taking the 32-bit application code and converting it to native 64-bit code that the Itanium processor can run, she explained.
- - - - -
Surfing the radio waves: Microsoft is using a twist on some old technology -- FM radio waves -- to deliver instant messages, headlines and traffic updates to a new generation of gadgets that will fit on your wrist or keychain.
The software company has big spending plans for its latest family of products, expected to go on sale in months. But Microsoft enters a wireless market crowded with pagers, handheld computers and cellular phones, and it still is signing contracts with companies that will provide information for the devices.
Microsoft envisions consumers using tiny liquid crystal display, or LCD, screens on a high-tech watch, for example, to check for continually updated information, such as stock prices, weather forecasts or traffic tips, said a Microsoft product manager.
- - - - -
Compiled by Kari L. Dean. Reuters and AP contributed to this report.
