“The Pixi -- a sleek, tiny device -- seems clearly aimed at the only market Palm has recently enjoyed unfettered success with: the Centro demographic.”
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PEZ... this device shares a lot of similarities with the Palm Treo 700w. Same size screen, qwerty keyboard, and undeniable business-centric focus.
However, it has an advantage over the Treo in terms of speed, RAM, quad band GSM/EDGE for world travelers, and built in wi-fi.
I think that's really the market that HP is targeting with this device.