Its Smartphones Selling Weakly, Palm Cuts Its Forecast; Shares Fall

Jon Rubinstein, Palm’s chief, with Pre and Pixi smartphones at the Consumer Electronics Show last month. The new phones have been slow to catch on.The warning came only weeks after Verizon Wireless began to sell Palm’s Pre and Pixi phones, suggesting that the addition of Verizon, the largest mobile service carrier in the United States, as a sales partner was not helping Palm as much as had been hoped.To read this Reuters report in full, see: seePalm Under Pressure After Sales Shortfall
Palm may be running short of options. The smartphone maker on Feb. 25 cut a key revenue forecast and said demand for its flagship Pre device isn’t meeting expectations, refueling speculation that Palm may soon need to seek a buyer.Fiscal third-quarter sales will be no more than $310 million, Palm said, blaming “slower-than-expected consumer adoption of the company’s products.” That’s about $100 million less than the $409.3 million expected by analysts in a Bloomberg News survey. Shares plunged 19% to $6.53.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.