Handspring Giving Away Cell Phone Modules

Handspring Inc. began giving away its expansion cellular phone module as part of a promotion to spur lagging sales of the device that turns a hand-held organizer into a phone. Only a few weeks ago, Handspring slashed the price of the unit to $49 from $249.

The free phone offer applies only when it is bought along with a hand-held device through Handspring’s Web site and then immediately activated through a compatible carrier.

Handspring shares plunged 49 cents, or 18%, to $2.21 on Nasdaq.