MILPITAS, Calif.-Palm Inc. released its new Bluetooth-capable personal digital assistant, while fellow handheld maker Handspring Inc. reported declining revenues and losses. Further, research firm IDC released results showing sales of PDAs continue to decline.
Palm said its new Tungsten T2 handheld features more memory and a sharper color screen than previous products and includes Bluetooth connectivity for use with a GSM/GPRS mobile phone. Palm will sell the device for $400.
Separately, Handspring reported revenues of $14.5 million for the quarter, down from the $30.8 million the company scored in the previous quarter. Handspring’s net loss was $13 million, down from the $90.4 million net loss in the previous quarter. Palm recently announced plans to acquire Handspring.
In addition, Handspring and its partners made a rash of announcements in connection with Handspring’s newly announced Treo 600 device. Handspring released preliminary software development tools to help developers create applications for the device, while browser company Access said it helped develop the device’s Blazer browser, and Electric Pocket said its technology will be part of the Treo’s multimedia messaging service.
However, all such posturing may come to mean little, according to new research from IDC. The firm said the worldwide market for handheld devices continued to decline in the second quarter in part due to sluggish demand from businesses and consumers alike. The firm said shipments fell by 10.7 percent year-on-year in the quarter and dropped sequentially by 10.2 percent to 2.27 million units. The tally does not include Handspring’s wireless Treo devices, only those that do not include wireless modems.
IDC said Palm managed to hold its top position in the market, while Hewlett-Packard Co. continued to solidify its standing as the No. 2 handheld vendor.
