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Oqo upgrades, drops price of model 02

Handheld computer maker Oqo makes a few tweaks to disk size, CPU speed, and drops price by one third.

Will a bigger hard drive and a slightly lower price tag move more UMPCs for Oqo?

Oqo has updated its Vista-powered handheld computer, and knocked 33 percent of the cost, bringing it down to $1,299.

Oqo Model 02
Oqo Model 02 gets an update. Oqo

The San Francisco-based company has increased the hard drive capacities of both versions of the model 02. The entry-level went from 30GB to 40GB and the higher-end from 60GB to 80GB. Plus, now there's a 32GB flash-based option. They've also slightly upped the CPU speed to 1.6 Gigahertz.

But it has yet to solved the in-between nature of its concept. It's still either clunky yet powerful PDA or an awkwardly sized laptop. New CEO Dennis Moore declined to say how many have sold to date. He did say that the company has sold "thousands per month" and that the second quarter of this year saw more sales than all of 2006, as did the third quarter. The model 02 was announced at CES this year and .

Though $200 cheaper is good, the product likely be attractive to more customers when the price is in between too.