The move will likely shrink the number of new handhelds that need the Palm operating system made by PalmSource, which counts Sony as its second biggest licensee after palmOne Inc. As a result, PalmSource shares fell 14 percent on Tuesday.
Sony, said it will focus its efforts on the wireless market including cell phones and communicators manufactured under both the Sony and Sony Ericsson brands and its PlayStation Portable (PSP) handheld gaming device.
"Sony is reassessing the direction of the conventional PDA market, and Sony will not introduce any new Sony Clie handheld models in the United States this fall," a Sony spokeswoman said.
Sony chose to scale back its PDA development rather than add voice features to gadgets which might have conflicted with more popular products made by Sony Ericsson, IDC analyst Alex Slawsby said.
