Palm Exec Expects Less Industry Growth

Palm Inc. Chairman Eric Benhamou said new products should boost sales this year in the moribund hand-held computer industry, but he expects growth of about 10% in 2003, short of analysts’ expectations.

Benhamou said during the Bear Stearns technology conference that industry analysts currently expect growth of about 18% in 2003, but he expects analysts to recalibrate their outlooks after a poor start for the first quarter of 2002. Palm said last month that sales for its fiscal fourth quarter, which ended in May, missed its target by up to 23% and pushed back hopes of an operating profit until the quarter ending in November. Analysts have said recent industry sales are tracking as much as 20% lower than last year.

Palm shares gained 9 cents to $1.58 on Nasdaq.