Palm Japan is selling its M100 entry-level PDA at a 60 per cent discount from Saturday.

The aggressive marketing move means the M100 is being sold for 4,900 yen (£28) and is part of a special, three-month long promotion to boost market share in a country in which Palm is facing stiff opposition from Pocket PC-based devices.

Palm products are also involved in a number of promotions in the UK. Dell is giving away a free M100 to anyone who might purchase one of that company's PC laptops.

Both Toshiba and NEC are selling such devices in Japan, and Fujitsu is also developing its own Pocket PC device. Palm held 13 per cent of the PDA market in 2000, with Palm OS-powered devices accounting for 36.5 per cent market share there. Windows CE-powered devices – the predecessor of Microsoft's Pocket PC OS – held 44.9 per cent of the Japanese market.

A spokeswoman for Palm in Tokyo, Hitomi Yamabe, said: "The idea is to get customer attention and create a larger user-base."

The company has also reduced prices in Japan of its M500 by ten per cent, while the M505 is 25 per cent, meaning Japan-based customers enjoy significantly lower prices than their counterparts in Europe and the US.

In the UK, Palm's M500 and M505 have been made available at a variety of discount prices from major high street retailers.