PalmOne launches Treo in India

NEW DELHI: Leading handheld computer maker PalmOne Inc. launched its popular Treo device in India, with its eyes on a slice of the world's fastest-growing major mobile market.

PalmOne will enter a $2.5 billion handset market already saturated with brands including Korea's Samsung Electronics Co. Ltd. and LG Electronics Inc., U.S. major Motorola and world leader Nokia.

Separately, Nokia announced plans to invest up to $150 million over four years as it starts making mobile devices in India in an operation that will eventually employ 2,000 people.

The underpenetrated telecoms sector in India, where only 4 in a 100 people own a mobile phone, has become a battleground for global players keen to grab a bigger share of a market where more than 37 million phones are expected to be sold in 2005.

California-based PalmOne has priced its Treo 600 smartphone at Rs 27,499 ($618) to compete with rival Research In Motion's BlackBerry e-mail device, priced at between Rs 19,000 and Rs 33,000. Along with the Treo, PalmOne will sell its Tungsten T5 handheld for Rs 22,999.

Aimed primarily at business professionals, smartphones are pocket-sized wireless computer-like devices that handle data, text as well as voice communications.

"The market is just right now," Kartik Ramaswamy, country manager for PalmOne in India, said. "There is now a significant amount of high-end services that have gained popularity here."

Several Indian carriers such as Bharti Tele-Ventures Ltd. and the Indian mobile unit of the Hutchison Whampoa conglomerate have successfully rolled out facilities like faster Internet access, e-mail on handsets and multi-media messaging in a bid to make up for declining voice tariffs.

As a consequence, a growing number among India's 45 million mobile users -- a number set to more than double next year -- have latched on to such services.

"There is significant potential in India as the high-end segment is expanding," Ramaswamy said.