Analysts said the bumper sales growth of its smartphones was a promising sign.

"Once they became more heavily weighted to the smartphone market, their growth had an opportunity to accelerate, because the handset market is such a green pasture," Jonathan Hoopes, an analyst at William Smith Company, told the Reuters news agency.

PalmOne has indicated that it is looking to capitalise on Sony Corp's decision to stop selling new hand-held devices outside of Japan.

But it is set to face competition from rivals such as Research In Motion's BlackBerry e-mail machine and mobile handset makers such as Nokia.

What is the necessity of saying 'outside of Japan'? You could simply say 'outside Japan' here.
I agree. The preposition "of" is unnecessary in this example.
Hello, Andrei. Emotion: smile
In your example, the preposition "of" is unnecessary, as Dave said.

However, it is used sometimes. I've heard Americans use it, and I know at least two songs in which "outside of" appears:
- "Outside of this (Inside of that)", by Jon and Vangelis
- "Don't let it show", by Alan Parson's Project (there's a line that says "keep it inside of you").

"outside of" also appears in some dictionaries as an informal alternative to "outside".

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I thank Dave and Miriam.

Now look at the words 'hand-held devices'. The reason for hyphenation is the following:

The word devices is a noun. So the words 'hand-held' modifies it. You don't find a word called 'hand held' in your dictionary. They created a single word as an adjective; therefore you must hyphenate it.

[Let me know whether my understanding is correct.]
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Correct. Adjectives of two or more words should be hyphenated.