Palm has introduced a compact portable computer to accompany its Treo smartphone, seeking to regain its competitive edge in the crowded high-end handheld device market.

The new 'Foleo' is about the size of a hardcover book and, at 2.5 pounds, half the weight of other small computers. It is designed to be used with a smartphone, to help business travellers better manage their e-mail and documents by offering a 10-inch screen, full keyboard and wireless technology.

Some analysts said the new gadget, unveiled at the Wall Street Journal's "D: All Things Digital" conference, did not live up to the months of hype by Palm - in part because the 'ultra mobile PC' idea is not new.

"This is a category that has failed to establish itself over the past five or six years," said M:Metrics analyst John Jackson. "I don't think it's going to go down in history as a remarkable device."

Company founder Jeff Hawkins said he expected unit sales of Foleo - priced at $599 before a $100 rebate beginning this summer - to be smaller than Treo units sales at first. - Reuters