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Technology Stocks : PALM - The rebirth of Palm Inc.

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To: Crystal ball who wrote (5062)5/31/2001 9:06:58 PM
From: matt dillabough  Read Replies (2) of 6784
 
AWSJ: Acer's Hand-Held Device To Be Introduced Across Asia

Dow Jones News Service ~ May 31, 2001 ~ 4:31 pm EST
By Terho Uimonen
Staff Reporter

TAIPEI -- Acer Inc. was set to announce Friday that it plans to introduce a hand-held computer later this year for the Asian-Pacific region including China, based on Palm Inc.'s market-leading software.

Under terms of the licensing agreement, which runs through 2005, Acer will develop and sell hand-held computers based on Palm's operating-system software. Acer and Palm will also jointly develop Asian-language versions of the software. To date, Palm has only translated its English-language software into Japanese, and instead relied on third-party companies to develop versions for other Asian languages such as Chinese.

Palm has taken a restrictive approach in licensing its software, mainly as a result of fears of jeopardizing sales of its own hand-held devices. However, in an effort to boost its sales in Asia, Palm has struck licensing agreements with device manufacturers such as Acer. Existing licensees include Samsung Electronics Co., Kyocera Corp. and Sony Corp., as well as Handspring Inc. and Nokia Corp.

Acer's forthcoming Palm-based hand-held device will feature wireless- communications capabilities and will target both consumers and business users. Financial details of the agreement weren't immediately disclosed.

Previously, Acer has unveiled prototypes of hand-held devices based on several other operating systems, including one developed in-house and one based on the Linux software.

Palm's software boasts around 75% market share in the global market for hand- held computers, also known as personal-digital assistants. Its main competitor is Microsoft Corp.'s Pocket PC software.

Acer's gadgets will compete against leading computer suppliers, including Compaq Computer Corp. and Hewlett-Packard Co., which are selling hand-held computers based on the Microsoft software. Indirectly, that pits Acer against a number of its local rivals. For instance, Compaq's hot-selling iPaq device is designed and built by High Tech Computer Corp., a Taiwan-based start-up.

(END) DOW JONES NEWS 05-31-01

04:31 PM
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