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Zire Handheld Family Attracts Mass-market and Media-savvy Customers
MILPITAS, Calif., April 22, 2004 -- palmOne, Inc. (Nasdaq: PLMO) has sold more than 3 million Zire™ subbranded handhelds in fewer than 18 months, spurred by worldwide sales of the original $99 entry-level Zire handheld and the $299 media-rich Zire 71 handheld.
"First-time handheld purchasers, including students, families and seniors, have embraced the Zire handheld as an affordable way to organise their busy lives," said Todd Bradley, palmOne president and chief executive officer. "The new converts who bought Zire 71 handhelds symbolize the beginning of a new generation of media-savvy handheld users."
In October 2002, six years after pioneering the handheld market, palmOne introduced the Zire and Tungsten™ subbranded products to define a new era in handheld computing. Zire handhelds provide affordable, snappy personal products that are simple, approachable and easy-to-use for people balancing personal, professional or academic lives. Tungsten products provide powerful solutions for mobile professionals and businesses.
"The Zire subbrand business strategy is working," added Bradley. "Zire products are attracting new customers to the handheld category, increasing the palmOne market share, contributing to our handheld revenue and establishing a customer base for an upgrade business. And they've enabled palmOne to expand its sales channels worldwide."
The Zire handheld family has expanded quickly into consumer segments, broadening the market and delighting customers from students to seniors. The original Zire handheld sold more than 1 million units in the first seven months alone, making it the fastest-selling PDA ever. It attracted more than 70 percent new users to handheld category, and more than 50 percent were women, according to palmOne research. Additionally, 90 percent of the early buyers said they were not very tech-savvy, but price-conscious. The media-rich Zire 71 handheld attracted nearly 40 percent new users to palmOne and was the No. 1 selling PDA in the United States until the introduction of palmOne's Tungsten E handheld in October 2003, according to palmOne. Its multimedia capabilities have high appeal for younger consumers and women. Based on research by palmOne, more than 80 percent of Zire 71 customers said they were extremely or very satisfied with their handheld and would recommend it to others.
The introduction of the original Pilot handheld from Palm in 1996 ignited a revolution in handheld computing around the world. The simplicity, tiny size, and long battery life of Palm™ products led to rapid adoption of the device and its successors. Last year, handhelds from palmOne commanded 39 percent of the worldwide personal companion handheld device market, according to IDC. During the last quarter of 2003, handhelds from palmOne led U.S. sales with 57 percent of sales across all channels, according to NPD Techworld.
Note Regarding Forward-looking Statements
This press release contains forward-looking statements within the meaning of the federal securities laws, including, without limitation, statements regarding our ability to grow our business, to expand our market share, to continue to lead our industry and achieve continued success with our Zire subbrand strategy. These statements are subject to risks and uncertainties that could cause actual results and events to differ materially, including, without limitation, the following: fluctuations in the demand for palmOne's existing and future products and services and growth in palmOne's industries and markets; possible defects in products and technologies developed; palmOne's ability to timely and cost-effectively obtain components and elements of our technology from suppliers; palmOne's ability to compete with existing and new competitors. A detailed discussion of these and other risks and uncertainties that could cause actual results and events to differ materially from such forward-looking statements is included in palmOne's most recent filings with the Securities and Exchange Commission, including its Quarterly Report on Form 10-Q for the fiscal quarter ended February 28, 2004. palmOne undertakes no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this press release.
About palmOne, Inc. More information about palmOne, Inc. is available at http://www.palmOne.com/asia.
palmOne, Zire and Tungsten are among the trademarks or registered trademarks owned by or licensed to palmOne, Inc. or its subsidiaries. All other brand and product names are or may be trademarks of, and are used to identify products or services of, their respective owners.
