Purchasers of the AU$869 Palm m515 Smarter Business Case in Australia currently receive a AU$100 cash-back, as well as a CD-ROM with software and a four-issue subscription to Fortune Magazine. Palm is also offering a AU$150 coupon for buyers of the AU$639 Palm m130.
In the US, Palm will join the list of handheld makers slashing prices in hopes of enticing new customers during what is traditionally a slow sales season.
The handheld maker is cutting prices by up to 34 percent on five of its six handheld lines. Palm joins Sony
"Historically, summer is slow for PDA sales," said Kenyon Scott, Palm product marketing manager. "Most suppliers use this time to create demand for sales through either re-pricing or promotions."
Last year, handheld makers were engaged in a fierce price war, caused by high levels of inventory. Yet Scott downplayed any concerns of a repeat.
"We see this as a seasonal adjustment, nothing atypical," Scott said.
The company cut the m105 handheld from US$149 to US$99, the m125 from US$179 to US$169, the m130 from US$279 to US$249, the m500 from US$299 to US$199 and the i705 from US$449 to US$399. The i705 still includes a US$100 rebate if consumers sign up for a one-year service contract for the Palm.net wireless service.
Palm did not cut the price of its m515 device, which remains at US$399.
"The 515 has shown to be incredibly popular, so we are not cutting its price," Scott said.
The company is likely cutting prices to clear inventory in preparation for new devices, according to William Crawford, an analyst at US Bancorp Piper Jaffray.
Last month Palm interim CEO Eric Benhamou said
"Palm has been in the position of being able to play a fast follow (in terms of innovation)," said Crawford. "They didn't need to be first, but going forward they need to better set the pace. They need more rapid product cycles."
Dear Sir / Madam,
We are a Company in Australia and require 100 Palm m515 units ASAP.
If you can organise stock to be delivered to Melbourne, Australia please contact us immediately.
please ensure your prices for such a large quantity are extremely competitive.
Kind regards,
Errol Jones
ADR Engineering