Everex Systems Inc, an affiliate of Taiwan's First International Computer (FIC), has scaled-backed its production of palm-sized PCs and has quit selling the product under its own brand name, sources in the US said yesterday.
The company's decision, attributed to component supply problems and poor sales, comes as other firms are strongly promoting similar products at the annual Comdex exhibition in Las Vegas, Nevada.
Mobile computing devices with Internet capabilities are seen as one of the hottest items at the show.
Everex representatives in the US said demand for the company's Freestyle series of palm-sized PCs has been poor. The company's palm-sized PCs are based on specifications developed by Microsoft and run the US software giant's Windows CE operating system.
Everex also has had problems recently with a shortage of color LCD screens for its newest model, the Freestyle 540.
A former employee of FIC, who worked closely with the team that developed the Freestyle series, said the company's senior executives had never intended the line to be a viable own-brand product.
Instead, he said the primary goal was to secure OEM (original equipment manufacturer) orders from foreign companies.
The employee suggested overseas companies would be more interested in the product, and more confident in its quality, if they saw Everex devoting resources to marketing its own version.
In fact, Everex was successful in attracting a large order from Compaq and makes the Aero range of palm-sized PCs for the US computer giant.
Everex is expected to continue to make palm-sized PCs for Compaq. Company officials could not be reached for comment.
Staff at LEO Systems, which handles manufacturing for Everex and sells its own version of the product in Asia, said they could not comment.
Leo, Everex and FIC are all members of the Formosa Plastics Group.
LEO launched its own Chinese-language version of the Freestyle hand-held PC with color LCD screen last month for sale in Asia. It is not yet clear whether this product will also be cancelled.
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