Starting Monday, the VisorPhone will sell for just US$49 with cellular service activation, a US$200 drop from its most recent price. Handspring had been running a promotion that sold the unit for US$99, but only when purchased with a new, high-end handheld.
A Handspring representative characterized the price cut as permanent, aimed at spurring sales.
"It's a great product that wasn't selling at the levels we'd hoped," the representative said.
The latest move follows a more modest US$50 price cut made in May from its original US$299 price tag.
Handspring introduced the VisorPhone in September and started shipping it in December.
Service plans range from around US$30 to US$150 per month.