Handspring cuts price on mobile phone add-on

MOUNTAIN VIEW: Handspring Inc. said on Monday it slashed the price of an

add-on that converts its handheld computer into a cellular phone to $49 from

$249, citing sluggish sales.

The discount price for the VisorPhone Springboard module, available via the

company's web site, applies to buyers who sign up for one year of mobile phone

service with one of Handspring's providers: Cingular Wireless, Powertel Inc. or

Voicestream Wireless Corp.

"It just hasn't sold as quickly in the volumes we had hoped it would

sell," said a spokesman for Mountain View, Calif.-based Handspring.

Handspring had been running a program that priced the unit at $99, but only

when purchased with one of Handspring's new, high-end handheld devices. The new

program does not require the purchase of a handheld. Retailers that sell

Handspring's devices are free to offer similar deals, the company said, although

the discount may vary by region depending on the dominant mobile service

provider.

Handheld computer makers, led by Palm Inc. and Handspring, have suffered in

recent months, hurt by a slowdown in consumer spending, oversupply, and heavy

discounting which has trimmed their average sales prices.

Handspring is expected to report its fiscal fourth quarter results on

Wednesday. In early June, Handspring halved its revenue outlook for the period,

to about $60 million from its previous forecast of $130 million. Shares of

Handspring fell almost 8 per cent on Monday to $5.53, off 46 cents.

(C) Reuters Limited 2001.