Acer launches first Chinese Palm OS handheld

By CNN's Kristie Lu Stout

TAIPEI, Taiwan (CNN) -- Top PC maker Acer is launching its s10 handheld, the world's first Chinese personal digital assistant to run on the Palm operating system.

Sales of the handheld will commence next month in Taiwan, with eventual release in the Hong Kong and mainland China markets.

Acer Brand Operation president J.T. Wang said the new handheld brought Acer a step closer to its long-term objective of being more than a major player in the device market. It also wanted to provide "infrastructure and end-to-end mobile solutions".

The Acer PDA features Chinese-language versions of basic Palm applications, as well as audio recording capability, MP3 file playback, and a 64MB memory module capable of saving up to 2 hours of audio.

Both Chinese and English text can be input by a stylus in the Graffiti area of the Acer s10, which has keys to instantly switch between the two languages and to access a bilingual dictionary.

"The Acer s10 handheld introduction also shows Acer's absolute commitment to providing thoroughly localized solutions for the Chinese market," Wang said.

'Good move for Acer'

"Tapping into the Chinese handheld market is definitely a good move for Acer," said IDC information application analyst Manny Lopez.

The Acer handheld, by virtue of being Palm-based, may see better sales in the mainland market than competing products based on Microsoft's Windows CE handheld operating system.

"It's a lot cheaper to manufacture the Palm version since the hardware isn't as intensive -- you don't need the strong arm processors that Windows CE devices need," said Lopez.

"In a price-sensitive market like the P.R.C., this is definitely key."

IDC estimates that 5.5 million PDAs will be sold in the Greater China market by 2002, generating revenue of more than $1 billion.

Acer on Thursday said fourth quarter revenue from its branded products could rise up to 26 percent from the previous quarter.

"The impact of the September 11 attacks on European sales was less than expected," Wang told reporters at a press conference.

The introduction of a Chinese-tailored handheld, analysts say, could further boost Acer's already rosy forecasts.

"The PDA should help increase Acer's revenue since the China market is a huge market right now -- sales should take off on this," said Lopez.