A Bear's Face on Mars Blake Lively's New Role Recognizing a Stroke Data Privacy Day Easy Chocolate Cake Recipe Peacock Discount Dead Space Remake Mental Health Exercises
Want CNET to notify you of price drops and the latest stories?
No, thank you

Palm cuts price of top-end model

Looking to compete this holiday-shopping season, Palm chops the price of its top-of-the-line m505 handheld. Will color-screen products lose their power to command premium prices?

Palm has chopped $50 off the price of its top-of-the-line color m505 handheld, bringing the model to $399 in time to compete for holiday sales.

The move is the latest in a series of price cuts in the handheld market but is the first drop for the m505, which debuted this spring.

Handspring recently cut the price of its lone color-screen model, the Visor Prism, to $299, while Palm has already lowered the m505's black-and-white sibling, the m500, to $329, from its original price of $379.

Palm cited a desire to focus on selling the m500 and other current models this holiday season as its reason for delaying the launch of a new wireless model it originally had promised would debut by the end of the year. Palm has received approval from the Federal Communications Commission for such a device, identified in its filing as the i705.

Black-and-white handhelds have tumbled in price this year, with Palm's low-end m100 now selling at less than $100. At the high end, buyers have tended to pay a bit more and go color. The m505 quickly proved far more popular than the monochrome m500, which was initially priced only $50 below the color model.

Although color-screen handhelds have traditionally been able to command a premium, prices in that segment may also be headed for a fall. "Our view is that color will (be a commodity) reasonably soon behind monochrome," said Bill Crawford, an analyst at U.S. Bancorp Piper Jaffray.