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Compaq to offer $50 rebate on iPaqs

In the latest holiday promotion to hit the handheld market, the computer maker plans to offer a $50 rebate on one of its newest handhelds.

    In the latest holiday promotion to hit the handheld market, Compaq Computer plans to offer a $50 rebate on one of its newest iPaqs.

    The move affects Compaq's H3765 model, which uses the same hardware as Compaq's last-generation iPaq but includes the new Pocket PC 2002 operating system introduced by Microsoft in October. With the rebate, the unit now sells for $449.

    The move is the first discount for a handheld running Pocket PC 2002, but is the latest in a series of price drops in the handheld market.

    The offer starts Sunday and runs through March 30.

    On Thursday, Palm chopped $50 off the price of its mid-range m125 handheld. In the Pocket PC realm, HP's older Jornada 525, which is not upgradeable to Pocket PC 2002, has been selling at under $200 as the PC maker looks to clear out the older product.