Sony announced a new version of its Clie handheld device yesterday, along with an add-on digital audio player for older Clie devices.
The $500 Clie PEG-N760C will be in U.S. stores next month. It will run version 4.1 of the Palm operating system and come with a color display and a built-in MP3 audio player. Current Clie users desiring MP3 support will be able to purchase the PEGA-SA500 audio adaptor for $130.
Sony's first handheld devices met with harsh criticism from the market, but better technology and lower prices have made their recent efforts more popular. However, the new device will have to compete with two new handhelds announced Monday by Handspring and one expected to be announced by Palm Inc. Thursday, as well as the growing segment of the handheld market occupied by Microsoft-based devices.
Microsoft's Pocket PC operating system currently has 10 percent of the handheld market. The new version, Pocket PC 2002, will be released in early October.