Feeds

Palm cuts prices to clear unsold stock

Roll up! Roll up! Roll up!

  • alert
  • submit to reddit

Security and trust: The backbone of doing business over the internet

Palm cut prices on three soon-to-be-retired models yesterday in a bid to tackle the build-up of excess inventory, including $100 million worth of unsold PDAs left over from last quarter and the $200 million worth of kit expected to remain in Palm's warehouses and the channel at the end of the current quarter.

So the Palm Vx - which will effectively be superseded by the m500 - is down $50 to $299. Its price was also cut when the m500 was announced last month. The Palm IIIc will now be priced at $299, down $30, though this cut had already been made through a discount programme. The consumer-oriented m100, recently followed up with the m105, falls $20 to $129.

Palm hopes the price cuts will spur demand, but the cuts seems sufficiently shallow to provoke the company's competitors into slashing their own prices and thus beginning the price war at least one Wall Street analyst has predicted. Handspring said it will not cut its prices in response to Palm's move.

Alongside the price cuts, Palm CFO Judy Bruner yesterday said the company would also focus on the management of its cashflow with moves to free capital tied up in its proposed move to a new corporate HQ and to renegotiate component contracts signed last year at a time of high demand and low supply. ®

Related Stories

Palm m50x line to be late for PDA price war
Palm stock nosedives

Palm to axe 250 jobs as it dips into the red

New hybrid storage solutions

More from The Register

next story
Hey, Scots. Microsoft's Bing thinks you'll vote NO to independence
World's top Google-finding website calls it for the UK
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Apple CEO Tim Cook: TV is TERRIBLE and stuck in the 1970s
The iKing thinks telly is far too fiddly and ugly – basically, iTunes
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
OECD lashes out at tax avoiding globocorps' location-flipping antics
You hear that, Amazon, Google, Microsoft et al?
Show us your Five-Eyes SECRETS says Privacy International
Refusal to disclose GCHQ canteen menus and prices triggers Euro Human Rights Court action
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Security and trust: The backbone of doing business over the internet
Explores the current state of website security and the contributions Symantec is making to help organizations protect critical data and build trust with customers.