Handspring, which was formed in 1998 by the same trio that created Palm, tossed its entry into the ring in June 2000. The Handspring Visor looks uncannily like a Palm, but it differs in that it harbors a slot for plug-in accouterments, such as an MP3 player or digital camera. Palm won't have anything to match until later this year. Analysts expect Palm to earn 13 cents a share for the fiscal year ending May 31. As for Handspring, don't look for it to enter the black until 2002.
Analysts go both ways.
To is a bull on the whole PDA business. Challenge one is the Luddite turn in the stock market. Challenge two is the inevitable presence of richer and more powerful challengers. Sony and Compaq, among others, sell their own hand-held devices. Microsoft has a PDA operating system that rivals Palm's and threatens Palm's hopes to profit by licensing its technology.