Handheld computers have joined wireless phones and briefcases as essential tools for most small business travelers. That's a good-news, bad-news sort of thing.

The bad news is that there is a seemingly endless array of handheld devices from which to choose with prices ranging from $100 to $700. It can be hard to understand the differences between the expensive models and the low-cost ones. The good news is that, like so much in the technology world, handhelds have become more powerful even as prices have dropped.

Priced between $300 and $400, the three devices reviewed here don't have high-end capabilities such as the capacity to act as wireless phones. However, unlike low-end devices, they have enough power for tasks like editing word processing documents and spreadsheets. In addition, they sport a variety of expansion options for adding storage and communications tools such as modems, and they have highly attractive color screens that are a pleasure to view.

Not long ago, handhelds this capable would have demanded high-end prices. Now, they represent the sweet spot in the handheld market with prices pegged between the high and low ends. They provide an excellent balance between power and price.

The Axim X5 represents Dell's first time at bat in the handheld market and it has hit a home run.

Based on Microsoft's Pocket PC platform, the Axim X5 comes in two configurations — one priced at $349 and the other at $249. We reviewed the more expensive model, which has a 400MHz processor (compared to 300MHz for the lower-priced model) and 64MB of RAM (compared to 32MB).

The Axim is a big bruiser next to the Treo 90 and Tungsten T, also reviewed here. Its five-inch height is about twenty-five percent larger than the other devices. And, at almost seven ounces, it is noticeably heavier. However, it still should be small enough for most users, fitting comfortably in a shirt pocket.

While the Axim is relatively bulky, it also has a lot of finesse. Specifically, we found its 3.5-inch 65,000-color screen to be far superior to the Treo 90's and larger and subjectively crisper than the Tungsten's. Like all Pocket PCs, it has built-in applications for editing Word and Excel files and synchronizing information with Outlook on the desktop.

Another strength is Axim's support for both CompactFlash and Secure Digital add-on cards for added storage or items like modems. Tungsten T and Treo 90 support the Secure Digital format but not the widely used CompactFlash format. In addition, Dell solved a common criticism of Pocket PC devices — short battery life — by using removable batteries and including (in the higher-priced model) a second battery that recharges on the synchronization cradle. Each battery provides an estimated eight hours of usage.

Of course, the Axim X5 is still saddled with Pocket PC's Windows-like interface, which some users don't find immediately intuitive to use. Nor does it have built-in Bluetooth wireless connectivity like the Tungsten T. But Dell improved on the best elements of Pocket PCs and then lowered the price into Palm territory, which makes the Axim X5 a very attractive handheld.