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Palm's predictions of PocketPC Price cutting come true

Only a week after PalmSource ceo David Nagel warned that "commodity pricing will prevail in the PocketPC market" Dell has not only launched its half-price hand-held, but has started cutting prices.

Only a day after launching its two PocketPC models at Comdex, Dell has sharpened its price-cutting knives and has written to existing customers with an irresistible offer: a fast hand-held for $175.

Admittedly, this is a monochrome model, and has no wireless capability; but nothing previously for sale on the market comes close.

Admittedly, also, the price is a "special" discount and offer.

However, it is horrifyingly close to what rival platform, Palm, was expecting. David Nagel in his interview with NewsWireless Net, was predicting exactly this; a price war with Dell leading the way, based on its ability to sell for smaller margins than anybody else.

According to Richard Shim at ZDNet, the company has sent an e-mail which offers a 10 percent discount in addition to a $50 mail-in rebate, to loyal customers, cutting the price of the two Axim hand-helds to $265 for the advanced model, and $175 for the cut-down mono version. The offer lasts until Monday, Nov. 25.

Shim reports the company sold 300 Axim handhelds on Monday from a single kiosk at Comdex so far.