[2][3] Aesthetically, Pocket PC 2002 was meant to be similar in design to the then newly released Windows XP.

Newly added or updated programs include[4][5][6][7] Windows Media Player 8 with streaming capability, MSN Messenger, and Microsoft Reader 2, with digital rights management support.

Connectivity was improved with file beaming on non-Microsoft devices such as Palm OS, the inclusion of Terminal Services and Virtual Private Networking support, and the ability to synchronize folders.

Other upgrades include an enhanced UI with theme support and savable downloads and WAP in Pocket Internet Explorer.

[9] With future releases, the Pocket PC and Smartphone lines would increasingly collide as the licensing terms were relaxed allowing OEMs to take advantage of more innovative, individual design ideas.