Microsoft and Samsung on Monday announced they have teamed up to develop a design for low-cost handhelds, a market dominated by rival Palm.

Devices based on the design will use Microsoft's Pocket PC software and Samsung's 200MHz ARM9-based S3C2410 application processor and will have 32MB of memory. The design also calls for a 3.5-inch color or black-and-white display, Secure Digital and SDIO support, and a petite 4.1-inch-by-2.8-inch, 2.9-ounce case.

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