Comdex Good for Handspring, Palm Stock Price

Whatever it was that investors wanted to hear, Handspring and Palm seem to have said it at Comdex. Handspring's stock price almost doubled this week. Palm's went up 30%, possibly on Handspring's coat-tails. Handspring co-founder Jeff Hawkins demonstrated the Treo wireless handheld at a Comdex keynote address and the audience responded very positively.

Handspring's stock price can only have been helped by the announcement that the Treo 180 and 180g will be out in January and the color version should be out three months later. This is earlier than expected.

During the speech, Mr. Hawkins made it clear that he believes the future of handhelds is in wireless access. That seemed to be music to investor's ears.

For those who have been living in caves, the Treo line is a collection of smartphones. The 180 will have a built-in keyboard while the 180g will use Graffiti for text input. Both of these will have monochrome screens, and cost $400 with a service contract. Details are still sketchy on the color version, the 270, though it is expected to also have a built-in keyboard.

Palm has long had the VII series, a wireless handheld with data capabilities. Palm is also developing an updated version with "always-on" email. It is expected to be out in the first quarter of 2002. It was originally scheduled to be out late this year but Palm postponed its release.

Palm's stock is also probably still getting a boost from the resignation of its CEO. Its share price is up 54% since that was announced.

Despite this week's percentage gains, it can't be ignored that both company's stocks are way off their yearly highs. Palm's stock closed today at $3.43, while its 52-week high was $57.56. Handspring's stock closed at $4.00, down from its high of $81.25.

Both are suffering from lagging demand and fighting a price war with each other and the other handheld manufacturers.

They are also facing increased competition from handhelds running Microsoft's Pocket PC, though Mr. Hawkins doesn't seem worried. "It's a fine product. I don't think it represents the future."

Related Information:

• PIC: Handspring Treo 180, 180g, 270 Coming in 2002
• PIC: No Palm i705 for Christmas