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A Pocket PC (abbreviated P/PC or PPC, also known by Microsoft as a "Windows Mobile Classic device") is a hardware specification for a handheld-sized computer (personal digital assistant) that runs the "Windows Mobile Classic" operating system. It has some of the capabilities of modern desktop PCs.
With the advent of Windows Mobile 6, Microsoft dropped the name Pocket PC in favor of a new naming scheme. Devices without an integrated phone are called "Windows Mobile Classic devices" instead of Pocket PCs. Devices with an integrated phone and a touch screen are called "Windows Mobile Professional devices", and devices without a touch screen are called "Windows Mobile Standard devices".
For more information, see Wikipedia's Pocket PC entry.