Compaq has admitted it is suffering major supply shortages of its iPAQ handheld PocketPC device.

CEO Michael Capellas said the problem was that Compaq cannot get enough high-resolution screens, combined with demand being 25 times greater than expected.

Capellas was speaking at the World Economic Forum in Davos, Switzerland. He said the supply issues will be solved over the next six months as Compaq has designed alternate displays.

The hard to get displays are HR (high reflective) TFT, which are special because they can be seen in daylight.

Compaq has said it will sell $500 million worth of wireless computers in Europe in 2001, the bulk of them being iPAQs. ®

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