palmOne Drops the Price of the Tungsten T3

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After being on the market for an entire year, palmOne has just dropped the official price of the Tungsten T3 for the first time.

For twelve months, the list price of the T3 has held steady at $399. Only today, with the announcement of the Tungsten T5, has the official price of this model dropped by $50.

In fact, as Shopper.com shows, this model has held its value amazingly well. A year after its release most companies are still offering the Tungsten T3 at the original price, with only a few going below it.

Now, of course, with palmOne dropping the official price by $50, just about all retailers will do the same thing.

Damage Control

palmOne is cutting the price of the T3 because it pre-announced the Tungsten T5 today. This is a dangerous move, as announcing a new handheld but not having it ready for sale can severely hurt a company.

Several years ago, Palm Inc. dealt itself a terrible blow by announcing the m505 months before this model was going to be available. Sales of its current high-end model, the Palm Vx, dried up, and the company had little revenue while it struggled to get the m505 on the market.

In hopes of keeping this from happening again, palmOne has cut the price of the T3. Price cuts often spur sales of current models.

Plus, the current situation isn’t exactly the same as what happened back in 2001. The model palmOne just announced, the Tungsten T5, has a few improvements over its predecessor. However, the changes are not so radical as to make the current model, the Tungsten T3, instantly obsolete. Many who have been holding off buying a T3 in hopes that its replacement would be a significant improvement may decide to go ahead and get the current model now that they know the details of the T5.

Overview of the Tungsten T3

The Tungsten T3 was Palm’s first handheld with a 320-by-480-pixel, color display and a virtual Graffiti area. It can display text and images in landscape, as well as portrait mode — implemented with one-tap access.

This model measures 4.3 inches tall (when closed), 3.0 inches wide, and 0.6 inches thick. It weighs 5.5 ounces.

The T3 runs on Palm OS version 5.2.1 on a 400 MHz Intel XScale processor. It has 64 MB of RAM (52 MB of which is available for use), an SD/MMC slot, and built-in Bluetooth wireless networking.

More information on the Tungsten T3 is available in Brighthand’s review of this handheld.

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