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A Palm executive and longtime retailer leave Palm behind in search of brighter futures

The financial and structural problems for Palm continue to pile up with no apparent viable outcome other than selling the company.

Palm started the week already under constant pressure, but it got worse when it was disclosed Michael Abbott, Palm Vice President of Software and Services, abandoned the company as Palm admitted it may be more difficult to find a new buyer than previously expected.

"We are concerned by the departure of Mr. Abbott, as he had principal responsibility for Palm's WebOS software, one of the company's few remaining assets," noted Lawrence Harris, CL King & Associates analyst, when speaking with

Abbott is expected to officially leave the company by the end of the week, though it's unsure if he'll be replaced.

The double whammy caused Palm's stock to slide a further 13 percent, as Abbott was the person responsible for helping lead development of Palm's webOS.

Palm has released the Pre and Pixi over the past year, but still hasn't been able to compete with Apple, Research In Motion, HTC, and other competitors.  The appeal for webOS is a driving force behind rumors of HTC and one or two other companies possibly buying the company.

If that wasn't enough, Palm also said RadioShack -- which is suffering its own financial issues -- also will leave behind the Pre and Pixi phones.  Sprint will instead offer a new RIM BlackBerry as the No. 3 wireless provider continues to battle against AT&T and Verizon Wireless.

Palm's financial woes have been well discussed in the past, and there are piles of unsold Pre and Pixi smartphones even though no more phones are being produced.

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RE: I'm no executive
By Wolfgangap on 4/20/2010 10:53:28 AM , Rating: 1
I recently lost my iphone and would have to pay $400 to replace it (my contract is up in July and then I can get a new one for $99). Instead, I bought an ATT Go phone for $30 and plan on just waiting for the new Win7 phones (I like Silverlight and .net development).

But if I could just buy a Pre for $150 I would certainly do that.

RE: I'm no executive
By guacamojo on 4/20/2010 4:29:57 PM , Rating: 2
Verizon is having a fire sale on its Pre's. $49 for the Pre, and Verizon will even let you out of your existing contract to do it. ("upgrade event")

It even qualifies for BOGO, so if you want two, it's a pretty good deal.

I'm getting one for my wife this weekend.

Maybe AT&T is doing something similar?

"Paying an extra $500 for a computer in this environment -- same piece of hardware -- paying $500 more to get a logo on it? I think that's a more challenging proposition for the average person than it used to be." -- Steve Ballmer
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