Source: Toshiba to launch Microsoft PDA

Toshiba is set to announce on Monday its first PDA (personal digital assistant), running Microsoft's Windows CE operating system, a source familiar with the company's plans said.

In April, a different source told IDG News Service of Toshiba's plans to launch a PDA.

Toshiba will face competition in the handheld market from the likes of Compaq, Casio and Hewlett-Packard, all of which have handhelds based on Microsoft's platform, and from Palm, Handspring and Sony, which have systems based on Palm's operating system.

At least one vendor is retreating from this market. Psion PLC announced this week that it will move away from the "completely saturated" handheld PC market.