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Palm expected to lose top revenue spot to Compaq

Palm will ship the most handhelds during the second calendar quarter of this year, but will come in second behind Compaq in revenue, according to a new report from Gartner Dataquest. The research firm expects Palm to ship around 700,000 units worldwide, generating between US$130 million and $135 million. In contrast, Compaq is expected to ship about 500,000 of its PocketPC-based iPaq handhelds, generating about $200 million in revenue. Two quarters ago, Palm generated more than $500 million from handheld sales. Handspring, meanwhile, is expected to move around 300,000 handhelds, generating some $62 million in revenue.

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