Palm's chief executive said today that the launch of Windows-based Pocket PCs in April has not yet impacted on its strong lead in the handheld device market.

Speaking at the Palm Executive Forum in London, Carl Yankowski said that while there had been no immediate infringement on Palm's market share, Microsoft's share was likely to grow "through the enterprise backdoor".

Microsoft is seeking success in the enterprise handheld market where it hopes IT managers will opt for the familiarity of the Windows platform and its compatibility with other systems.

Yankowski also announced Palm's strategy for letting its European users connect their devices to the internet. Palm executives outlined a three-pronged strategy, to be executed over 12 months.

Firstly, it will develop web browsing software that will allow internet connection via an infrared link to a mobile phone and through its Palm.Net gateway service. The second option, partly aimed at users with older devices, would be the delivery of add-on attachments through partners that link to devices such as wireless modems.

Finally, the vendor will develop an all-in-one device for the European market that will provide GSM, and later GPRS (General Packet Radio Service), connectivity. It will be similar to the Palm VII, which is on sale in the US but doesn't work on European mobile networks.

William Maggs, Palm's chief technology officer, said that smart phones do not provide a repository for information that many users need, and that Palm offers a better user experience than anything else on the market.

"There is no blue screen of death and no hour glass with our operating system - and there won't be," said Maggs. "We want to provide a compelling mobile internet experience for users without sacrificing ease of use."

Maggs said that Palm's aim was to provide wireless access across all its devices, and to develop a next-generation Palm OS that brings voice-enabled and multimedia functions to the handheld device.

The addition of Bluetooth technology, which would allow inter-device communication through a short-range radio connection, is also part of Palm's plans, though it admits this might present security problems.

According to the latest available IDC figures, Palm has 53.1 per cent of the personal digital assistant market, with Psion registering a 22 per cent share.