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Palm in red as iPhone grabs sales

The US handheld computer maker Palm has reported a three-month loss as the launch of Apple's iPhone hit sales of its own smartphones.

It made a net loss of $841,000 (£412,000) between June and August, compared with a profit of $16.5m in the same three months of 2006.

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Looks like Palm is the first to suffer the effects of the iphone. Apple is successfully musceling into the smartphone business. Will they release low end models to break into the general market as well is the next question.

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