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November 12, 2001 4:40 PM PST

Palm offers OS upgrade, delays Bluetooth

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LAS VEGAS--Handheld computer maker Palm has started selling a new version of its operating system but has pushed back the availability of a key add-on module.

The handheld maker is offering attendees at the Comdex Fall 2001 trade show the first chance to buy the upgrade to Palm OS 4.1, a tweak to the Palm OS that adds improved security and other features. Those at the show can also save $10 off the $39 price of the upgrade.

However, Palm executives told CNET News.com on Monday that a Secure Digital expansion card that enables Palm devices to use short-range Bluetooth wireless communications technology will not be on the market this year, as was planned.

Palm said when it introduced the m500 handheld last March that the Bluetooth module would be available by year's end.

In discussing the delay of the Bluetooth module, Claudia Romanini, senior director of custom solutions for Palm, noted that the standard for using the postage stamp-size Secure Digital slot to handle tasks other than storage was approved only last week.

A larger attachment from TDK that allows Palm handhelds to communicate with nearby Bluetooth-equipped cell phones, printers and other devices is shipping in Europe and will be available soon in the United States.

Separately, Compaq Computer said an iPaq with integrated Bluetooth will come out this quarter.

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