Handspring #2 in Retail Sales

While the Visor has been available over the Internet since last year, it has only been in stores a few months. That's what makes it such a coup for Handspring that they are the number two handheld seller in retail for the second month in a row.

In May, Handspring had 25% of the retail market while Palm had 67%. The previous month, Handspring had 18% to Palm's 72%.

If any of you are concerned that Handspring is "stealing" market share from Palm, Palm wants this to happen. They hope to someday stop making hardware at all and just licence the OS to other companies and be a wireless ISP. Palm CEO Carl Yankowski recently said, "Devices are critical, but they are a means to an end. We're on the cusp of what I believe is a wireless revolution." The profit margins on selling devices are low while the profits from being an ISP are much higher. And you only have to look as Microsoft to see what the profit margins are for the company that owns the dominant Operating System in a market.

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