Dell's new line of handhelds get lighter and thinner. But the real point is that this is already a shrinking market.
"Research firm IDC has projected that worldwide handheld industry shipments will in 2003 decline for the second year in a row, shrinking by 8.4 percent to about 11.35 million units. Limited growth is expected to return in 2004, IDC said".
Why is Dell in the game? Two reasons. First, they need to own consumer share. Second, they can command decent margins because they're Dell. But one is probably a lot more important than two.