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.