Microsoft and its partners believe there is room for another PC form factor: One that is bigger than a handheld, but smaller than a laptop.

Microsoft is betting these devices, dubbed ultra-mobile PCs – or "Origami" systems – "will eventually become indispensable and ubiquitous as mobile phones are today," according to officials with the Redmond software maker.

Prototypes of a variety of Origami systems will make their official debut at the CeBit trade show in Germany on Thursday. The first Origami devices from Samsung and Founder are due to start shipping next month. ASUS Origami devices will start shipping in June. While device makers will be determining their own prices, Microsoft is expecting the first generation of devices to be in the $599 to $999 per unit range, officials said.

The new devices are expected to weigh in at less than two pounds, with seven-inch screens offering a variety of stylus, touch and keyboard input choices. Microsoft and its partners are expecting the first generation of Origami systems to offer two and a half hours of battery life; feature 30 GB to 60 GB hard drives; and be based on Intel Celeron M, Intel Penium M or VIA C7-M processors.

Ultra-mobile devices are designed to be synched with non-mobile work or home PCs, "making it easy to take music, movies, photos and Office documents on the go," Microsoft officials said.

But Origami systems are not meant to replace existing consumer or business devices, like cell phones or laptops, said Krammer.. Instead, the Origami backers believe these units will supplement users' existing devices and be one element in a whole family of emerging "Lifestyle PCs"

And Microsoft and its partners are emphasizing these won't be all-in-one units meant to do a little bit of everything that cell phones, MP3 players, laptops and other systems can do today.

PC makers and software vendors "will cut the custom deals," said said Mika Krammer, Microsoft director of Windows client mobile marketing. Device makers will be the ones who "dictate which e-mail clients and other software that they will ship," she said. If a particular PC maker wants to focus on creating an Origami iPod competitor, that is its prerogative, she said. Others might opt to focus on creating more of a business-style device.

Microsoft is looking to its hardware and software partners to customize systems with a variety of built-in features, including GPS, webcams, fingerprint readers, digital TV tuners and compact flash. Partners will preload all kinds of software, from games, to the full Office suite, on different models. Systems will include WiFi, Bluetooth, Ethernet and other networking options.

Under the covers of the first generation of Origami devices is a full version of the Windows XP Tablet PC Edition operating system. On top of this is a layer of software known as "Windows Touch Pack," which will ship with the ultra-mobile hardware. The Touch Pack optimizes the Tablet operating system for the ultra-mobile form factor, by adding the finger, stylus or QWERTY keyboard input options.

All Origami systems will include built-in text and digital-ink instant-messaging software, as well as Microsoft Sudoku, a game developed by Microsoft.

Origami models based on the VIA processor will debut from TabletKiosk and PaceBlade Japan in the second quarter of 2006, according to Microsoft.

Microsoft is expecting the first Windows Vista-based generation of Origami systems to debut at the same time as Vista ships, which is expected to be fall 2006.
Over time, Microsoft is anticipating its hardware partners will be able to sell for $500 per unit, company officials said.

"Personally, I think Origami could do quite well if it's priced aggressively," said Directions on Microsoft analyst Matt Rosoff. "Laptop PC sales are growing among consumers, and this is basically a super-mobile laptop. Most consumers use their laptops to do things like e-mail, IM, Web surfing, and digital media consumption. If an Origami device is cheaper and can do all those things as easily and well as a laptop, then it has a chance.

"At the same time," Rosoff noted, Origami "is definitely trying to fill a new niche, which may not exist. It really comes down to pricing and exact feature set."

Burton Group analyst Peter O'Kelly said he expected Origami devices to be "surprisingly popular over time, especially as battery technology continues to improve.

"In general, given a choice between a device designed to be dedicated for a specific task (or a few tasks) and a general-purpose device that addresses the same needs -- without seeming like a clunky Swiss Army Knife device brick -- I'll take the general-purpose device every time," O'Kelly added.