Richard Shim of ZDNet News reports that a report to be released today by research firm Gartner predicts that Compaq Computer will topple Palm from the top spot in revenue from handheld devices. Shim writes . . .

“Palm continues to hold the No. 1 position for market share and shipped more units in the second quarter than Compaq and other rivals, Gartner analysts report. However, a higher average selling price for Compaq's iPaq handheld devices will lead to significantly higher revenue for Compaq, said Gartner, adding that the shift could happen as early as the current quarter.”

“The data reflects the increasing popularity of handheld devices in the enterprise market — a market 'Palm has failed to put roots into,' but handhelds using Microsoft's Pocket PC have done with better success, Gartner analyst Ken Dulaney said.”

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