Tuesday, December 10, 2002|
Palm strikes software deal with China's Legend
REUTERS
BEIJING: PalmSource, the software unit of top handheld computer maker Palm, said on Tuesday it will licence its products to China's biggest PC firm, Legend Group, boosting its foray into the vast China market.
The four-year deal will let Legend fit its handheld computers with a Chinese language version of PalmSource's OS 4.2 operating system unveiled on Tuesday.
Company officials said they hoped the Legend contract would help pry open the personal digital assistant, or PDA, market in China, of which PalmSource accounts for only three per cent.
"The China market is very important, obviously," PalmSource Chief Executive David Nagel told a news conference.
"Worldwide, China is one of the leading economic powers in terms of growth and diversification, and we see the same growth in consumers themselves."
Financial details were not disclosed.
Nagel reiterated the company's goal of attaining at least 20 per cent of China's PDA market within two years. Legend also showed off a new device equipped with PalmSource software.
Boasting a color screen, MP3-playing ability, a dictionary, address book and calendar, the gadget will have a price tag of below 2,000 yuan ($240) when it goes on sale in January.
PalmSource's operating system would power more than half of Legend's handheld computers within a year, said Legend Vice-President Lu Yan.
Market researcher International Data Corp has forecast China's PDA market will grow 52 per cent next year.
But the market is saturated with low-priced devices using proprietary software from scores of domestic companies. Some of the largest makers include Hi-Tech Wealth, Mingren, Legend and appliance giant Haier, according to IDC.
PalmSource said it had also signed a similar licence agreement with Group Sense PDA, a subsidiary of Hong Kong-listed Group Sense (International).
Palm's operating system licencees also include South Korean electronic giant Samsung, Taiwan PC maker Acer and Japanese mobile phone producer Kyocera.
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