Handspring Slashes Visor Deluxe Prices

Handspring Inc. lowered the price of its Visor Deluxe hand-held computer by 20% to spur demand and step up competition with rival Palm Inc., which cut prices last month.

Handspring lowered the Deluxe price to $199 from $249 and is offering a free leather carrying case, usually $25, to customers who buy it through the company’s Web site. Mountain View, Calif.-based Handspring also is offering a $50 rebate on its $299 Platinum model through June 17.

“Both Palm and Handspring have inventory they need to work down, with Palm in much worse shape,” said Rob Cihra, an analyst with ING Barings. Handspring previously offered a $50 rebate on the Deluxe, Cihra said.

Handspring shares fell 94 cents to close at $12.09, and Palm closed off 12 cents at $8.27, both on Nasdaq.