SonicBlue at loggerheads with Psion over PDA stockpile

What's to be done with all those unsold Diamond Makos?

By Tony Smith • Get more from this author

Posted in Business, 13th June 2001 16:46 GMT

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SonicBlue does indeed appear to have a problem shifting its Diamond Mako PDA (see SonicBlue axes third of workforce). And we hear that its partner, UK PDA pioneer Psion, is unwilling to help it out.

SonicBlue signed up to rebadge Psion's Revo Plus handheld under the Mako name last October. Since then SonicBlue appears to have sold even fewer of the machines than Psion has. Not surprising, that, since the Mako retails for twice the price of the comparably specced Palm m100 and the Handspring Visor.

Result: SonicBlue is sitting on a heap of unwanted Makos said to be many thousands of units strong, quite possibly enough to reach the moon if laid end to end.

With its finances looking increasingly precarious, SonicBlue wants rid of them. It even told its erstwhile partner that it would dump them on the European market if Psion proved unhelpful. Psion, however, is sticking to its guns - it won't have them back, is demanding its partner pay up and has threatened all sorts of dire consequences if it doesn't.

And who can blame it? When it comes to selling PDAs, Psion has problems all of its own.

Sounds like a Mexican Stand-off to us. Which company will go for its legal guns first, we wonder?

In the meantime, someone, somewhere must want a warehouse full of Makos. We wouldn't say no to a handful. Whatever, suggestions to SonicBlue, please, not us... ®