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Is it a phone? Is it an audio player? It's...

John Lui CNet Asia

Published: 10 Mar 2003 10:11 GMT

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A Taiwanese electronics maker plans this year to begin selling a portable device that's half digital audio-video player and half mobile phone.

"Movie playback is one of our major targets with this device," said Rick Lei, general manager of sales at BenQ, which spun off from computer giant Acer a year ago to concentrate on high-tech consumer products.

The device will sport Microsoft's as-yet-unreleased Media2Go operating system. The OS is designed for multimedia on mobile devices, said Lei, and is a good fit for BenQ's upcoming product.

He added that the company's engineers in Taiwan are working with Microsoft to ensure that the device can play stored music, photos and movies, compressed in formats such as MPEG-4.

Peer-to-peer file-sharing services such as Kazaa have been explosively popular in the past year, with millions of users downloading MP3 music, movies or TV shows into PCs. Each movie typically consumes around one gigabyte of hard drive space.

The as-yet-unnamed BenQ multimedia player/phone will sport a 10GB or 20GB hard disk of the 1.8-inch variety made by Toshiba or Hitachi -- the same type found in Apple Computer's iPod.

When launched in August or September, the device will cost $399 (about £250) for the 10GB version and $499 for the 20GB version.

Since BenQ spun off from Acer, it has had to compete with rivals such as Sony and Samsung, which like BenQ sell both IT and consumer products, with some of them blurring the line between the two worlds.


If it moves, we cover it. See ZDNet UK's Mobile Technology News Section for the latest news, reviews and price checks on mobile phones, PDAs, notebook computers and anything else you can take away.

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