Palm Cuts Prices on Handheld Computers

Palm Inc. on Wednesday cut prices on several of its handheld computers in an attempt to move older merchandise and trim bloated inventories.

The Santa Clara, Calif.-based company, which dominates the market for pocket-sized electronic digital assistants, said it would reduce the price of its two-year-old Palm Vx to $299 from $349, just weeks after it lowered the price from $399.

In addition, the entry-level m100 model was cut to $129 from 149, while the IIIc, which has a color screen, was lowered to $299 from $329, Palm said.

The company announced the cuts, which are effective immediately, at a gathering of analysts on Wednesday. In late March, Palm surprised Wall Street when it said its fiscal fourth quarter ending in May would show a greater loss than forecast due in part to growing inventories.

“Our goal is to gain share intelligently while moving inventory,” said Marlene Somsak, senior director of corporate communications. “In addition to the price drop, we have initiated in-store promotions and new point of sale displays.”