[CNET] Palm, Handspring Lose Ground to Microsoft.

From: Adam Rifkin (adam@knownow.com)
Date: Wed Feb 21 2001 - 21:07:39 PST


This is all Kragen and Dossick's fault. Darn you iPaq buyers, you're
eroding the Palm market...

    http://news.cnet.com/news/0-1006-200-4880476.html

> Palm, Handspring lose ground to Microsoft
> By Ian Fried
> Staff Writer, CNET News.com
> February 20, 2001, 4:30 p.m. PT
>
> Palm and Handspring saw a decline in their share of the handheld market
> in January, losing some ground to devices running Microsoft's Pocket PC
> operating system.
>
> On Tuesday, market researcher PC Data reported that Palm had a 60.5
> percent share of the U.S. retail market in January, down from 65 percent
> in December. Handspring, which licenses the Palm operating system, also
> saw its share drop, to 26 percent from 27 percent.
>
> Meanwhile, Pocket PC-based handhelds gained market share. Compaq
> Computer's iPaq handheld doubled its share, to 4 percent last month from
> 2 percent in December. Hewlett-Packard grabbed 3.5 percent of the
> market, up from 2 percent. And Casio rose to 2 percent from 1.5 percent.
>
> PC Data analyst Stephen Baker said Palm and Handspring garnered a bigger
> share in December than in January because of holiday-related purchases
> of their less expensive models. But Baker added that the new figures
> probably don't signify a long-term change in market share. That's
> because sales of Pocket PC-based handhelds, which are sold more often to
> businesspeople than are Palm-based handhelds, are less seasonal, Baker said.
>
> On a related note, Baker said the average selling price for all
> handhelds was $296 last month, up from $280 in December.
>
> He said the rise was due to the fact that the pricier Pocket PCs made up
> more of the market in January. In addition, he said, Palm is
> experiencing a post-holiday jump in average selling prices. Palm heavily
> marketed its entry-level m100 and low-end IIIxe handhelds during the
> holidays but is now more aggressively selling its high-end models.
>
> Last week, Palm announced a $100 rebate on its top-of-the-line Palm VIIx
> wireless handheld and said it will start selling a handheld with
> wireless Internet access in Japan later this year.
>
> Although handheld sales in units and dollars dropped substantially from
> December, unit sales were still double those of January 2000, Baker
> said. Revenue from handhelds was up 85 percent compared with a year ago.

----
Adam@KnowNow.Com

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