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To: DlphcOracl who wrote (51484)	5/13/2001 8:49:41 AM
From: puborectalis	Respond to of 57584

Palm lowers Palm VII price By Douglas F. Gray May 11, 2001 3:37 pm PT LESS THAN A week after Handspring cut the price of its Visor Deluxe handheld to $199, Palm has followed suit, cutting its own Palm VIIx from $299 to $199, Palm announced Friday. The company is also offering a $100 rebate to customers who buy a Palm VIIx and sign up for one year of Palm.Net wireless service at either $24.99 per month for a limited amount of airtime or at $44.99 per month for unlimited airtime. The rebate is good through Dec. 31, Palm said in a statement. On Monday, Handspring announced that it would cut the price of its Visor Deluxe from $249 to $199. Handspring is also including a free case with the Visor. Handspring's offers only run through June 17. Palm last cut prices on its handheld devices last month, when it dropped the m100 from $149 to $129, and the color IIIc and black-and-white Palm Vx to $299 each. This is likely to be the end of the price cuts, Kevin Burden, an analyst at IDC, said. "It can't go much lower," he said. "Handspring only cut prices because Palm cut prices, and Palm only cut prices to move inventory." If further cuts were made, the effects on either company could be detrimental to long-term success, Burden said. Palm lowered prices mainly to move the Palm VIIx out, because word on its successor, due in the fall, has leaked, Burden said. "They're using these cuts to push the Palm VIIx out before the news of the upgrade becomes common knowledge to the general public," he said. The battle between Palm and Handspring, both of which run Palm's operating system, is not very likely to carry over to devices running Microsoft's competing Pocket PC operating system, because the devices have different markets, he added. "But what we have seen is Compaq and HP coming out with Pocket PCs that are priced at a more attractive level." The "more attractive" price point for those devices is less than $500, Burden said. "They realize that the price point may have been a deterrent to widescale adoption," he added.