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Well selling more Axim's would make more money yes, but in the case of the X5 that argument may be moot since I wouldn't be surprised to see it replaced by another model by the time WM2004 comes out. If that were to be the case then Dell wouldn't really have any prospects of making money from X5 unit sales but offering upgrades would allow them to squeeze out a bit of profit from the large existing X5 user base.
Having a WM2004 upgrade available would also make a good impression on anyone looking to buy a Dell PPC at that time (so in a way it could generate more PPC sales, even if they are no longer X5s). There are few handheld manufacturers out there that would bother offering multiple upgrades on a device that sold at the X5's price point.
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