Windows Mobile for Pocket PC is the name for Microsoft's operating system for handhelds. Basically, it's what used to be called simply "Pocket PC" and many people still use that name.
There's also a Phone Edition of this operating system which has been designed for handhelds that are similar in size and shape to typical Pocket PC models except with cellular-wireless capabilities, like the Samsung i700 (pictured at right).
Windows Mobile for Smartphone is for mobile phones with extra wireless features, like email and Internet access.
Probably the most obvious difference is in the screens. A Pocket PC will have a 240-by-320-pixel screen that is touch-activated. A handset running the smart phone version will have a 176-by-220-pixel screen and use a joystick for user input.
Nevertheless, there can be some overlap in their capabilities. Both a cellular-wireless Pocket PC and a smart phone have the ability to access email and the Web, make phone calls, play games, and run other types of applications.
Windows Mobile for Pocket PC is used in a wide range of devices from the entry-level HP iPAQ h1930 to the high-end ASUS MyPal A716. The Phone Edition is targeted at mobile professionals, while Microsoft is positioning its smart phone OS for typical consumers and mobile professionals who don't want the full capabilities of the Phone Edition.
A good example of a Windows Mobile smart phone is the Motorola MPx200 (pictured at left).
Microsoft designed its Smartphone platform to allow companies to make relatively inexpensive handsets. However, devices that run this OS are still capable of multitasking, playing advanced games, and multimedia. There is even a version of Windows Media Player for it.
Applications written for one of these won't automatically run on the other but can be ported.
If you still have questions, there's a summary of the differences beween the versions of Windows Mobile on Microsoft's web site.
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