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After posting a $5.1million loss, BSquare has announced that it is withdrawing its handheld PC. The handheld had been available in the UK through Vodafone and was sold mainly to business users as an alternative to smartphones and PDAs.

While the handheld PC market died a death a few years back, it has seen something of a comeback in recent years, with the likes of OQO, Tiqit and Dana all offering devices that offer something different to normal PDAs. BSquare simply couldn’t sell enough handhelds to cover the costs of developing and launching the device. It will now offer the Windows XP-based wireless PDA to other manufacturers under licence.

Brian Crowley, president and chief executive officer of BSQUARE, explained:

“Ultimately, decreasing order volumes in the second quarter from our largest customer and concerns regarding the market life of the current Power Handheld device caused interested parties to pass on the Power Handheld hardware opportunity, causing the company to decide to end manufacturing of the device and, instead, focus its resources on the enabling software included in the Power Handheld device.”

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