Why Palm Has Its Hands Full

The No. 1 maker of handhelds overestimated demand. Now it must cope with a bulging inventory, growing competition, and discounted prices

Just six months ago, Palm CEO Carl Yankowski gloated that he couldn't manufacture the company's hot-selling handheld electronic organizers fast enough. America's growing love affair with personal digital assistants had helped the company breeze past forecasts and double its revenue for five consecutive quarters.

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