Palm fries Dell Mother boards? Interesting stuff.
Compaq won't spin iPaq off because it is part of marketing a complete IT solution to corporate buyers.
NW
Palm in a Corner
New York, Aug 09, 2001 (123Jump via COMTEX) -- Palm in a Corner
The Pinnacle Law Group of San Francisco Wednesday accused leading
handheld-device maker Palm Inc. (PALM), alleging that its handheld computers
damaged desktop computers when users "hotsync" the devices to their PCs. The
lawsuit was filed Tuesday in San Francisco County Superior Court on behalf of
California residents Melissa Connelly and Laurence Stanton; laywers are seeking
class-action status.
It claimed the function that allows users to synchronize the data of the mobile
device with their PCs "damages or destroys the motherboards on certain PC
brands." The suit did not specify which Palm models were allegedly defective,
nor what models of PCs were affected.
Andy August - a lawyer with the Pinnacle Law Group - did not comment on the case
but stated in an interview that "preliminary investigations" have allegedly
identified at least one brand - Dell Computers - as being affected by the
problem.
"Our investigation has uncovered that it involves more than one (Palm) model and
we know it's more than an isolated problem," August added.
Palm spokeswoman Marlene Somsak said in a brief statement that they "haven't
seen the lawsuit yet."
If this accusation is proved in court, Palm would be in serious trouble. The
company has sold more than 13 million personal digital assistants since it
introduced the original Palm Pilot in 1996. 3Com spun off Palm in 2000.
Its affordable, entry-level m100 competes with the base model offered by rival
Handspring (HAND). The pricier III and V series include features such as color
displays and increased memory. The Palm VII model adds wireless Internet access
to address book, e-mail and memo functions and can be fed abbreviated Internet
data using the company's MyPalm portal.
Palm was acquired in 1995 by modem maker U.S. Robotics, which 3Com bought in
1997. 3Com spun off Palm in 2000.
Santa Clara, California-based Palm presently has a commanding, but shrinking,
share of the increasingly competitive market for handheld organizers. According
to Dataquest Inc., Palm's shipments fell by half in the second quarter, down to
an estimated 898,000 units from 1.79 million units in the first quarter.
Although Palm maintained its position as the No. 1 PDA maker in terms of
shipments in the second quarter, it lost significant market share over the
period. Rival Compaq Computer Corp. (CPQ) gained ground with its
corporate-targeted iPAQ, doubling its market share over the previous quarter.
Corporate PDAs' diverse applications, higher price points and relatively low
market penetration, have made them more immune to the current economic slowdown,
according to Dataquest analysts.
Palm's Chief Executive Carl Yankowski admitted Wednesday that the company has
not been aggressive enough in selling to corporate customers as Compaq grabs
market share in that sector.
"We haven't been as aggressive as we need to be in terms of marketing (to
corporate customers)," Carl Yankowski said at a U.S. Bancorp Piper Jaffray
technology conference in Boston.
Yankowski outlined a number of moves Palm will make in the coming months to
maintain its leadership position in that market.
The company's operating system will be adjusted to handle Microsoft Corp.'s
Office software. The company also plans to tap a group of corporate partners to
sell Palm devices. Palm is currently working with SAP AG (SAP) and
PricewaterhouseCoopers to develop corporate-specific applications for Palm
handheld devices. |
