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To: The Phoenix who wrote (33940)	9/13/1999 6:37:00 PM
From: Edwarda	Respond to of 45548

What are PALM revenues and margins? What impact will competition have on margins? How will COMS differentiate the PALM in the face of competition? For the fiscal year ended in May, Palm contributed $570 million to total revenues with an 8% operating margin, probably going up to $880 million in the current fiscal year. Although profitability should continue to rise this year, the company will need to spend $$$ on putting together an administration of its own as well as R&D and marketing. Keep in mind, though, that Palm also derives revenue from licensing its operating system. There is also revenue opportunity from a central portal site. As I understand it, Handspring's product is aimed at the consumer market, which tends to be more price conscious. Moreover, Handspring is licensing the Palm OS. There is also the competitive advantage for Palm of about 20,000 application developers out there.