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As a result, Handspring gained tremendous prestige in the PDA arena throughout 2000 and the beginning of 2001.
Unfortunately, Handspring was soon confronted with steep competition from rivals such as Palm and Microsoft. Thus, Handspring was forced to engage in a price war with them in order to secure the PDA market share (Hunger & Wheelen, 2004, Case 11, p.11-7). Pricing wars with Palm had a substantial impact on Handspring's return on investment. Handspring's Consolidated Statements of Operations showed the end of 2001's fiscal year at a net loss of $125,963,000, and a net loss of $1.21 per share (Hunger & Wheelen, 2004, Case 11, p...
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