Palm unveils latest Tungstens

Palm has debuted two new devices in its Tungsten range, the T3 and E, as well as a range of accessories as it tries to cash in on the three months leading up to Christmas.

Both are based on ARM processors and Palm OS 5.2.1, though the lower end E relies on infra-red rather than Bluetooth connectivity.

At a launch event in London, Palm executives said that decision was made to make the model as cheap as possible. It will sell for £149 and, as a replacement for the best-selling m515 and Palm V, is an attractive price for businesses or consumers.

In the US, Palm is also launching the consumer-oriented Zire 21 but this won't be seen in Europe this year.

"Upgrades have played a very significant role in [Palm's] success," said IDC analyst Kevin Burden. "Expanding beyond this audience will be crucial and they've done that so far with the Zire line, but they have to continue."

Armenta said 74 per cent of the buyers of the original Zire were first-time buyers.

The higher-end T3 will sell for £329, though cheaper deals may be on offer. Palm maintains prices of over £500 - common for some Microsoft Pocket PC-based devices - are "too high for the average consumer".

Among those backing the release of the new models are IBM, Oracle and Sage who are all showing off applications on the mobile devices.

Separately, Palm UK country manager Tim Mahne, said Palm is looking forward to selling the T600 Treo smart phone designed by Handspring. Palm is splitting into PalmSource, a software business, and palmOne, which has made an offer to buy Handspring, set up by former PalmPilot co-creator Donna Dubinsky.

The company said on Tuesday that it had set 28 October for a stockholder meeting to vote on the PalmSource spin-off and Handspring acquisition.