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Palm to spin-off software arm

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CIOL Bureau
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NEW YORK: Palm Inc., a maker of handheld computers, said that it would change its name to palmOne after a spin-off of its operating software arm this fall.



The Milipitas, California company, which announced plans in June to buy competitor Handspring Inc., said the change in name reflects its desire for innovation.



The company has planned for a couple of years, to spin off its PalmSource business, which contains the underlying operating system for its handheld devices. That software runs not only Palm devices, but those made by Sony Corp. and Symbol Technologies Inc.



The hardware portion of Palm's business has been called Palm Solutions but after the spin-off and name change, that name and division will no longer exist, the company said.



Demand for handheld devices, which can hold thousands of phone numbers and calendar entries, has declined during the last two years as customers have shied away from pricey gadgets.



Palm has introduced less expensive brands that have done well, but has also faced new competition from No. 1 personal computer maker Dell Inc., which entered the handheld market late last year.



Palm said that the new company will include handheld computer hardware brands like Zire and Tungsten and the combination cell phone and handheld device called Treo, that it will acquire with the purchase of Mountain View, California-based Handspring.



Palm plans to close the Handspring purchase this fall.



The company said that its products will have the new name stamped on them in 2004.



© Reuters

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