maker of the Pre and Pixi smartphones, is facing desperate
Banking News has reported that
Palm's production halt continues as it is unable to sell the
stockpile of webOS handsets it has built up. There's no
official word from Palm, but the announcement seems likely to be true
as Palm stock plunged 30 percent to around $4 a share following the
news.Palm has a rich history and helped to launch the PDA and
smartphone movements. Lately, it has struggled to keep up with
Apple iPhone and Research in Motion Blackberry smartphones. And
smartphones have largely killed the market for PDAs, so Palm can no
longer seek refuge in that market. In 2008, Palm saw the
writing on the wall and made an ambitious bid to retake the market.
After much investment, it unveiled
webOS, its new smartphone operating system. In June 2009,
the Palm Pre launched
on Sprint, America's third largest wireless
carrier. Commentary on the smartphone and its OS
was mixed, but overall was somewhat positive. The interface was
much like the iPhone, but it lacked the iPhone's extensive app
library and used slower interpreted code for apps (as opposed to
native code). Perks, though, included multitasking and a
physical keyboard.Since the launch of the Pre, Palm has done
its best to beef up its offerings, releasing the cheaper Palm Pixi
handset and the Palm Pre Plus on Verizon, the nation's largest
network (Sprint was the first to get the Pixi). It also
released a new software development kit that allowed native
application code via the Simple Direct MediaLayer. The results
were impressive -- Palm devs were able to quickly port both Doom and
Quake to the phone, a feat impossible with interpreted code.For
all that effort, Palm's sales continued to slip as it saw Apple and
RIM post gains. People simply didn't seem interested in the
Palm handsets. Over
The Air in
February reported that Palm had shut down its production of webOS
handsets. Palm claimed at the time that the shutdown was
temporary -- just a closure for the Chinese New Year.Now it
appears that the shutdown was not just for the holidays. Palm's
poor sales, showcased by its miserable
Q1 2010 calendar quarter (its fiscal Q3 2010), are catching
up to it and it is developing a large overstock of webOS
to Morgan Stanley Analyst Ehud Geldblum, Palm this quarter
produced 960,000 phones, but amazingly has only sold 408,000 of
them. The total overstock is estimated to be 1.5 million units,
following a 29 percent drop in sales in the first quarter of this
year, which ends at the end of this month. Palm's revenue has
reportedly dropped $22M USD over the current quarter.To put
Palm's unfortunate failure in context, Google's Android sold
5.5 million units in Q4 2009 and Apple moved 7.5 million
iPhones. That means that Palm's sales for entire quarter are
approximately the number of units Apple or Google sell in a single
week.Even if Palm was incredibly able to continue the sales
pace of its Pre and Pixi (which is perhaps possible given its new
Verizon contact), it would take nearly a year before it could sell
off its stock. By then new Android handsets would have arrived,
a new iPhone, and Windows
Mobile 7 -- all while Palm is stuck trying to unload
increasingly dated handsets.Palm will likely be forced to
turn to deep discounting. At first blush this might seem happy
news for the consumer, but ultimately it is not a
good thing as it will hurt Palm badly, which in turn will hurt Palm's
ability to promote a successful app market for consumers.
all the bad news surrounding Palm these days, there was a bit of good
news for the company today. AT&T announced that both the Pre Plus
and the Pixi Plus will
be heading to its network “soon”.
quote: You've just firmly solidified your position as one of the millions of asshats in this world who think they understand technology...but truly have no clue.
quote: The statement is true because the apple appeals mostly to the most nontechnical usercrowd - the people who generally don't get it. Why can someone own a car and understand horsepower/gas mileage/safety ratings/etc... but not comprehend the most basic fundamentals to the inner workings of a computer (whether mac OR apple based)?
quote: And the reason they don't bother to market to people like that is because such people are a tiny, tiny percentage of the market.
quote: Statements like this are a perfect example of why so many people who post here get so het up about so much trivia, trivia that 90% of the population not only don't care about but don't want to know about. The reason that Apple products sell so well, why their product growth rate is so high, is precisely because they don't market to people like those quoted above.
quote: Exactly, so why come to a tech site of which mostly consists of tech literate people that are not in Apple's demographic, and expect everybody to understand your opinion?
quote: I think you got under their skin most when you confused storage and RAM, and then refused to say something along the lines, 'Damn, I knew I shouldn't have posted before I finished that first cup of coffee.'Being an Apple fan probably didn't help you, either.
quote: If you really don't know, of all the Hacker Contest Held Legally, there is one that is held every year. MAC's were the very first to fall, then Windows, then other Linux flavors. So what does that tell you?Your sense of security is through obscurity. The only reason why MAC's are does not get Maleware/Viruses/Trojans/Worms its because of the exact reason you stated - MACS have a very little demographic of users and owners (4%-7% of all PC's in the world).Why would a hacker trying to get money, hack MACs (4% of PCs) when they can hack Windows based PCs (90%+ of PCs). Also your MAC if its MSRP was $1200, have the same identical PC components inside as a $400 Windows PC. There IS absolutely no difference besides the shiny outside and the MAC Operating System.
quote: Meanwhile in the real world (where I prefer to live) there are no viruses or propagating malware for Macs while every day tens of thousands of Windows PCs get infected.
quote: Where does all your negative emotional energy come from and is it healthily?
quote: From Apple Sheeple like yourself posting BS nonsense, and it's only unhealthy if I don't call you an Ass-Hat, Ass-Hat.