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Daily News

Palm to Produce Low-End Models in Brazil
Jul 8, 2003
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Hand-held computer maker Palm plans to announce on Tuesday that it will begin manufacturing low-priced models in Brazil, according to the company.

As reported by Reuters, a source close to the project said the firm was planning on producing less-expensive models of its hand-held computers such as the Zine line that sells currently for about 399 reais (U.S. $140) in Brazil.

"It's going to be good for them (Palm)," Marcelo Quintas, an analyst for the local company research firm IDC, told Reuters. "It is a good strategy because it avoids fluctuations in the dollar and can reduce (production) costs too."

"Aside from this, they will be able to export to Peru, Chile, Argentina and Venezuela," said Mr. Quintas who added that Brazil's hand-held computer market is growing at about 10 percent a year.

Palm has been active in Brazil since 2000, importing its products that are assembled in North America.

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