Following a further slump in sales, Psion, the UK manufacturer
of handheld computers, has announced plans to cut 250 jobs in its
mobile computer division. It has reduced its first-half revenue
projections for the Psion Digital division to £36 million, down
from £77 million in the same period last year.
At the same time, its share price has dropped 17% to 59p. It
blames this poor performance on a saturated consumer market for
handheld computers and related cellular phone markets. Psion
intends to refocus attention on the corporate sector.
Psion has also cancelled plans to create a Bluetooth handheld
computer and related peripherals, in the light of a slower that
expected establishment of a mass market for products dependent on
that technology. However, remaining core development staff will
continue to develop the netBook range of products, which are
targeted at education and corporate markets.
Compaq, the computer manufacturer, which has already axed 3,500
positions, has also issued a profit warning and announced its
intention to cut a total of 8,500 jobs. The group identifies
falling European sales as the main reason for the recent downturn
in the companies performance.
It remains to be seen whether the release of Microsoft’s XP
operating system, which Microsoft anticipates will be released on
25 October 2001, will provide a much needed boost to Compaq’s
sales.
