Palm trims price of entry-level models

Launching the latest salvo in an ongoing price war, Palm has dropped the cost of its two entry-level models, bringing its least expensive device to under $100.

Effective Thursday, Palm cut the price of the m100 by $30 to $99 and shaved $50 off the cost of the m105, which now sells for $149.

The moves follow Palm's introduction last month of the m125, which is similar to the monochrome m105 but includes a Secure Digital expansion slot.

Rival Handspring has also been cutting prices, most recently a $100 drop this week for its color-screen Visor Prism.

Palm and Handspring have both been aggressively cutting prices since the spring, when a drop in demand left Palm with a glut of products.

Last month, Palm dropped the price of its high-end monochrome model, the m500, to $329 from $399. On Aug. 20, Handspring cut the price of the slim Edge by $100 to $299.

Both companies have seen their stock price take a massive hit this year as financial results have been stung by the repeated price drops and slowing demand. Shares of both companies, which once traded for nearly what the m100 now costs, have been selling lately for around $1.50--half the cost of a replacement stylus.