Handheld Price War Possible

Posted By: Ed Friday, May 4, 2001 7:17:22 AM

Lehman Brothers analyst Joseph To has issued a report predicting that Handspring will soon cut prices for its low end Visors to match the cuts Palm made last month. Palm cut the m100 to $130 but, according to Mr. To, this hasn't been enough to clear out the excess inventory. He said Palm might have to lower the price to $100.

Gartner Research Fellow Martin Reynolds went even further. He suggested that both companies may soon need to reduce prices on their new high-end models. "If the economy is slowing down, then the higher end models are going to either sell at a lower price point or sell fewer units."

A Handspring spokesperson confirmed that his company is considering some price reductions. "We will over time have price cuts," he said though he wasn't specific about when. He said that his company is "analyzing what we have to do to retain the customer base and the good sell-through that we've had."

Mr. To said these cuts might begin next week but would be more likely later in the month to match up with Father's Day and graduation season.

Palm Cuts Prices in the Face of Excess Inventory

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Visor already at $199 (sort of)

I.M. Anonymous @ 5/4/2001 1:16:09 PM #

Handspring has been offering a 50 dollar rebate on the Visor deluxe for the past month or so..They should just drop the price to $199 and be done with it.

RE: Visor already at $199 (sort of)

wayne @ 5/4/2001 2:44:37 PM #

Companies prefer rebates over straight-out discounts for two reasons:

1) A lot of people are lazy and don't send rebates in, even when it's for $50.

2) They can delay sending you the money for a while and collect interest on the $50. Multiply that by a lot of purchases and it works out to a lot of money.

RE: Visor already at $199 (sort of)

I.M. Anonymous @ 5/4/2001 5:30:12 PM #

But the point is... You still get the $50... who cares about the company.. it is not your concern. Interest on $50 is not very much.. Dont bring up such stupid things.

RE: Visor already at $199 (sort of)

I.M. Anonymous @ 5/4/2001 6:38:10 PM #

Er, the interest issue is not "stupid" considering how many thousands of $50 rebates they will sit on.

RE: Visor already at $199 (sort of)

I.M. Anonymous @ 5/4/2001 10:26:14 PM #

As a rule, the only rebates I go for are "instant" rebates at the cash register because the mail-in ones are for the most part (I have found) a big scam worthy of a federal probe.

I have followed the rules meticulously several times: put the address on the miniscule rebate coupon, cut out the upc barcode from the box, include the sales receipt, etc. and do I get a rebate? NO!

Last time I got a rebate check was several years back from IBM for OS/2 v2 so now I just steer clear of rebates.

Respectfully,
David somewhere in Pflugerville, TX

a benifit to all

twizza @ 5/4/2001 9:05:41 PM #

after reading the stories about schools that are requiring new student to come in with PDAs this may be a very good bet for palm and others. i could see other schools implementing these kind of policies even faster seeing the prices falling but the support remaining the same.

also businesses that rely on palms and the lke for data and info transfer this could prove to be really good for them. and all of this may in teh short terms be bad for aplm but in the long term be a better move than their ususal price reductions every 3-7 months.

i have a IIIxe and an seriously considering upgrading to a m500 just for the expansion and i could see others making a similar move once the prices go down. i like the form factor and could use the look to make others jealous :)

A Good Thing

Jim Chasse @ 5/5/2001 2:25:37 PM #

This price war is a good thing. Palm devices are very over priced. I paid 400 dollars for my Visor Prism. I feel I paid to much. These hand held devices are great, and I could not live without it. However 400 dollars is way to much.

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