The Clié PEG-SL10 costs only $150 (£96), making it $30 cheaper than its previous cheapest model, and is also $30 less than Palm's M125 handheld, which has been offered in a back-to-school package in the US.
It also competes with Palm's M105 and Handspring's Visor Platinum, which both sell in the US for $149 (£95). Both the M105 and the Visor Platinum run older versions of the Palm operating system and are slightly larger than the latest Clié.
The SL10 has 8Mbytes memory and has no serial interface, although it does have USB and infrared ports. It runs on three AAA batteries, unlike the S360, which has a built-in rechargeable battery.
It will be available in the US next month, although Sony has no plans as yet to sell it in other markets.