News Burst: Transmeta's ripple effect on Psion, ARM

Low-power chip aimed at laptops, desktops and mobile devices could mean trouble for established companies

With the high-profile launch of Transmeta's new microprocessor Crusoe, aimed at portable devices, chipmakers such as Intel, Advanced Micro Devices and Cyrix aren't the only companies who could be affected. Some industry observers also say handheld device makers Psion and Palm Computing, not to mention embedded-processor developers ARM Holdings and others, may also need to rethink their strategies.

At first glance, the markets seem to agree with the doom-sayers. Shares in Psion and ARM both dropped Thursday, with the handheld computer maker down 229 to 3,022p on the London exchange and the chipmaker off 37 to 3,260p. (ARM also dropped sharply Wednesday.)

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