Millions of people use some type of hand-held computer to organize and make their lives easier – from the ubiquitous Palms to the Windows-based Pocket PCs. However, hand-held computing is at a critical crossroads. Not long ago, Palm owned the market with a 70 percent to 80 share. No longer. Microsoft’s Pocket PC is making inroads, especially in the enterprise market.

While Palm has suffered criticism for not innovating, Handspring, Sony and Handera have picked up the pace. But even Palm’s inventor-Jeff Hawkins, who went on to found Handspring-has discovered that building a better mousetrap does not automatically translate into profitability. His company ultimately had to give away the VisorPhone, a $300-$500 cellphone add-on for Visor organizers, as part of a service bundle.

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