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-- Palm: "Record Sales!" – What about Handspring?! (http://discussion.visorcentral.com/vcforum/showthread.php?threadid=1444)

A couple weeks ago, the press reported with great that…
“Palm 4th-quarter revenues rise 101%. Net income is up 147%.”
[ http://www.corporate-ir.net/ireye/i...amp;script=2100 ]

Below is an excerpt from the Press Release: (as stated on the address above)
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SANTA CLARA, Calif.--(BUSINESS WIRE)--June 28, 2000--Palm, Inc. (Nasdaq:PALM) today reported record revenues of $350.2 million for the fourth quarter ended June 2, up 101 percent from year-ago revenues of $174.3 million and up 29 percent from revenues of $272.3 million in the third quarter of fiscal 2000.
Excluding separation costs related to the split from 3Com, net income was $16.9 million, or $0.03 per share, an increase of 147 percent over net income of $6.8 million, or $0.01 per share for the fourth quarter of fiscal year 1999. Including separation costs, net income for the fourth quarter was $12.4 million, or $0.02 per share.
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So, what does this mean for us Visor (AKA Handspring Corporation) fans? Here is my take on Palm’s recent announcement:

Listed below is a summery of the Amazon Electronics top 100 Best Sellers list:
[ from http://www.amazon.com/exec/obidos/t...0124034-0583860 ]

#3. Handspring Visor Deluxe (Graphite)
#10: Handspring Visor Deluxe (Blue)
#22: Handspring Visor (Graphite)
#29: Handspring Visor Deluxe (Ice)
#59: Handspring Visor Deluxe (Orange)
#71: Palm Vx Connected Organizer
#87: Palm IIIc Connected Organizer
#93: Palm IIIxe Connected Organizer

As you can see, Handspring’s products are BLOWING AWAY their Palm counterparts. Even the colored Visors have outsold the Palm V! (…also noteworthy is the fact that all 5 of Handspring’s listings are flying of the virtual shelves, whereas Palm’s 3 models with all rank in the lowest quarter of the list)

Usually Amazon lists the sales rank for all its products…I have not been able to find the sales rank for the Graphite Handspring Visor deluxe. However, I have pieced together some parts of the puzzle:

Amazon lists the user demographics and user locations in which every item is popular. The Graphite Visor Deluxe ranks:

“Popular in: Hotmail Corporation (#2) America Online (#1) MSN.com (#3)”

Interestingly, no Palm models were listed as “popular in” any of the above user bases. Clearly, Handspring’s products have better captivated the “average computer user” (i.e. AOL user, Yahoo surfer, etc.) than Palm Corporation’s offerings!

Yet, this posting began with Palm Corporation’s claims of record sales…

So…I did a little more research to determine the source of Palm’s success. By tracking the zip codes of buyers, Amazon can piece together a “Purchase Circle” for every location. (something similar to the New York Times best sellers list based on from internal data, and reflecting specific locations)

The Electronics Purchase circle for Santa Clara, CA shows:
“Here is the list of the items that ranked highest in sales in Santa Clara, CA…”
#1: Palm V Connected Organizer
#2: Palm V Slim Leather Carrying Case
#3: Palm V Hard Case
#4: Palm IIIx Connected Organizer
#6: Palm V Hotsync Cradle with Charger
#8: Palm V Travel Kit
[http://www.amazon.com/exec/obidos/tg/cm/browse-communities/-/216419/103-0124034-0583860 ]

Amazon’s list of Best selling Electronics in Palo Alto, CA reports:
#1: Palm V Connected Organizer
#2: Palm V Hard Case
#3: Palm V Slim Leather Carrying Case
#4: Palm Vx Connected Organizer
[http://www.amazon.com/exec/obidos/tg/cm/browse-communities/-/216324/103-0124034-0583860 ]

In short: The Palm V won Silicon Valley over.

Amazon’s data relating to AOL/Hotmail/MSN implies that mainstream culture has accepted the Handspring line. (The sky-high product rankings for Handspring’s products reflects tremendous sales volume within AOL, MSM, Hotmail, etc) Yet, all these astonishing numbers come without any support from the Silicon Valley group (i.e. computer savvy / techie), whose sales (I think) have provided the impetus to Palm’s success!

I recall reading on VisorCentral a rumor that Handspring was working on a “slick” Visor similar to the Palm V. The management of Handspring Corporation (who just so happen to be the same people who founded what is now the Palm Corporation) knows exactly what they are doing. They have captivated typical computer users with affordability and iMac-style color choices, and will soon win over the more sophisticated market, which is Palm’s sole stronghold.

Here’s something to think about :
It X is bigger than Y, and Y is big, then X must be HUGE! I can’t wait for Handspring to announce Visor sales and corporate earnings. (If I recall correctly, Palm’s announcement alone lifted their shares significantly)

Does anyone else have any data relating to the comparative sales of Palm Corporation and Handspring’s Visors? (i.e. from a source besides Amazon?)

Perhaps Amazon’s numbers do not accurately reflect overall sales since the sales are all Internet based by not taking into account the impulse shoppers in brick and mortar stores. (However, I remember read that in the Visor land-based store debut, Handspring’s gold mine blasted away all Palm models)

Most significantly, all these sales have come WITHOUT the help of the promised mp3, radio, and wireless springboards. With the release of the much-anticipated 3rd party accessories, Handspring sales will only go higher!

What are your views on Handspring’s future? (Handspring certainly does have its faults which they must overcome, namely customer support / online ordering.)

Handspring couldn't post about "record sales" because they released in stores in the middle of a fiscal quarter. Wait until the end of the next quarter earnings comes out (very soon since it ended in June I believe!

I sure hope it pushes the stock up though! I hold 100 shares!

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-Petro

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