Palm Cuts Price of Its m505 by 11%

Palm Inc., a maker of hand-held computers, lowered the price of its most expensive model by 11% to lure holiday shoppers amid slack consumer spending.

The company cut the price of its m505 computer to $399 from $449, it said in a statement. The m505, introduced in March, features a color screen and works with expansion cards that let users play games and store data.

Palm sales have returned to levels before the Sept. 11 terrorist attacks but aren’t back to the “significant growth” of a year ago, Chief Executive Carl Yankowski said at a Prudential Securities investor conference. He declined to elaborate.

Palm shares fell 8 cents to close at $2.38 on Nasdaq.