The fundamental difference between Palm and Microsoft is that Palm licenses its OS and carries a line of handhelds, while Microsoft's PocketPC provides an operating environment for hardware manufactured by other companies such as Compaq, NEC, HP, and Casio. Palm with dominating market share numbers. PalmOS-based devices, namely Palm's own systems, have historically dominated market share for years. However, PocketPC-based devices are making a move. With Compaq's new iPaq product, introduced in July 2000, Compaq has sprung from negligible market share into third place behind Palm and Handspring.
Wireless connectivity is a near term priority.
The near term goals for PalmOS, PocketPC and their competitors are based on the need to capture and maintain market share. Importantly, these companies are focused on snaring corporate users with their new wireless efforts. Even though Palm is currently ahead with its integrated wireless offerings, Microsoft has recently announced a large speech and mobile access infrastructure initiative. Besides developing infrastructure, other wireless priorities include partnering with mobile service providers, modem, and other hardware vendors. Among the many rival devices to PDAs, smartphones, wireless phones with integrated PDAs, are playing a dominant role in device manufacturers' efforts.