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Looks like there is going to be alot of unhappy people for awhile. Apparently the initial benchmarks of the XScale processors are showing that it's not playing well with PocketPC 2002 OS. In other words, the OS is holding back the speed and you can expect Strong Arm 206Mhz response from an XScale 400Mhz processor!
Richard Shim over at CNET has posted an article about this phenomena and the marketing nightmare this could turn out to be. "The lack of pizzazz could well turn into a marketing problem for Hewlett-Packard, Toshiba and others selling the new handhelds. HP's new iPaq H3970, released at the TechXNY trade show in New York this week, sells for $750 (about £525). Except for the processor switch and new screen technology, it's basically equivalent to the older iPaq 3870, which sells for $100 less."