Palm decides to go wireless

Palm is trying to grow its market share with new Internet-linked, wireless

versions of its popular Palm organizers. Palm chief executive Carl Yankowski

said this week that his company wants to move from making "personal

information management" devices to Web-ready "e-wallets" that

combine that information with the ability to make purchases.

"We are investing aggressively in new products. Increasingly, we are

going to be wireless," Yankowski said. Palm will launch new wireless

products in the second half of 2001 that will feature instant messaging and more

robust email capabilities. Palm is also developing a voice-activated email

system for drivers in conjunction with Delphi Automotive Systems.

Palm controls an estimated 66 per cent of the $2.5 billion market for

handheld devices. That is the same market share the company has a year ago.

Analysts said that maintaining such high market share in the face of new

competition testified to the popularity of the Palm family of products.

Palm has shipped 11 million handheld units since the Palm launch. Some 94 per

cent of new users say they plan to buy more Palm devices in the future,

Yankowski said.

The company is aggressively pursuing alliances with corporate customers. Palm

has also won contracts with 350 companies to provide Palms to employees.