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July 14, 2001 7:00 AM PDT

Handspring to slash price of VisorPhone

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Handspring is making a major price cut on the attachment that turns its Visor handhelds into a cell phone.

Starting Monday, the VisorPhone will sell for just $49 with cellular service activation. The add-on unit cost $299 when it was released late last year.

Handspring had been running a promotion that sold the unit for $99, but only when purchased with a new, high-end handheld.

A Handspring representative characterized the price cut as permanent, aimed at spurring sales.

"It's a great product that wasn't selling at the levels we'd hoped," the representative told CNET News.com.

The latest move follows a more modest $50 price drop in May with service activation.

Handspring introduced the VisorPhone in September and started shipping it in December.

Service plans range from around $30 to $150 per month. Without service activation, the VisorPhone will still cost $299.

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