Palm Goes Low-Tech With Latest Gadget

Peering into Palm's(PALM) future may seem a lot like a trip down memory lane, as the struggling company prepares to launch its first new device since it revamped its strategy in December.

Palm is going decidedly low-tech with the introduction of its $99 Palm Zire, rather than attempting to jam as many gee-whiz functions into the smallest amount of space as possible. The old-fashioned Zire is Palm's lowest-priced product to date.

Handheld-device manufacturers increasingly are paying attention to the lower-cost end of the market. Hewlett Packard(HPQ) recently announced it plans to begin selling a $299 version of its Ipaq device, while ViewSonic also announced a similarly priced device. In fact, analysts have suggested that lower-priced handhelds make up between 30% to 45% of the market. ...