Compaq Revenue to be Higher than Palm Revenue
As yet another sign of Palm Inc.'s current problems, Gartner has released a report predicting that Compaq will soon show a higher quarterly revenue than Palm Inc. This doesn't mean that more iPaqs will be sold than Palm models, simply that Compaq will have a greater cash flow from its sales.
Gartner predicts that the average selling price of an iPaq is more than twice the average price of a Palm. They say the likely average price for a model from Palm Inc. is $209, while the average Compaq model will sell for about $500. This can only be caused by a drop in the sales of Palm's high-end models.
The Gartner report goes on to to predict that Palm Inc. will sell 622 thousand handhelds during its second quarter, where Compaq will sell 450 to 500 thousand.
In the past, many have accused the Gartner Group of being biased towards the Pocket PC and Microsoft. They have been predicting that the WinCE platform would inevitably beat out the Palm platform almost since the first WinCE devices were launched.
However, Pocket PC licensees are doing a better job of selling their handhelds to large corporations, who tend to buy in bulk, than Palm OS licensees are. The Palm OS is still dominating consumer sales.
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