Pre, Pixi not saviors as Palm spills more red ink in Q2

Pre, Pixi not saviors as Palm spills more red ink in Q2
Palm reported another losing quarter as the company shipped 783,000 smartphones in the period, up 41% from last year's second quarter but off 5% sequentially from Q1. The three month period ended November 27th and profits and revenue were under Wall Street expectations. 573,000 Palm units were sold in the three months, off 29% from the first quarter and 4% below the 2008 second period. The sell-through rate gives evidence that Palm phones are not selling like hotcakes. The company lost $85.4 million in the three months compared with a loss of  $508.6 million last year. The 2008 numbers are skewed by a charge for a tax provision. "We’re still in the early stages of a long race," Jon Rubinstein, Palm's CEO said.

Palm's last chance at survival might depend on how well the Pre and Pixi sell on the Verizon network. With the emergence of the Motorola DROID, the nation's number one carrier finally has a device that can stand next to the iPhone and while it looked like Big Red would need the Pre earlier in the year, the excitement that once greeted the rumors of a Verizon branded Pre is now gone. All of the praise that Palm had received early in the year is now being said about Motorola and all of the analysts who jumped on the Palm bandwagon early in the year have been jumping off.

Palm Pre Specification | Review
Palm Pixi Specification | Review

source: NYTimes

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7 Comments

7. rjt185

Posts: 257; Member since: Jun 11, 2009

Their last change would be striking oil in VZW, a big seller like a good-qual build Pre or a Wifi Pixi could potentially sway the folks that are too timid to jump into Android.

6. DonLouie

Posts: 594; Member since: Dec 22, 2008

I suggest the Hero or Moment, or hold off and see what's to the Pre Plus. 2.1 Android for the formers and something more than the current Pre and an app catalog that has apps added daily to the 800 they have now

2. BigRed83

Posts: 144; Member since: May 19, 2008

Having started my smartphone usage with the Treo600 almost 5 years ago, I have a fondness for Palm. Seeing the Pre made me hope they would pull themselves out of their mess. The reported build quality issues, and their being on Sprint diminished the shine this device could have had. The bright spot? Palm has had a chance to see the impact of usage over the last 12 months. Possible outcome? Palm could take a page from RIM's notebook, and make PrePlus (Pre2?)a stronger device for round 2 that might hit Verizon. THAT could make a difference, IMO. I recently took the WebOS learning course (my 1st exposure to the platform), and I like the Synergy feature. Enough to change from my DROID? Gotta see what actaully hits Big Red; maybe as a 2nd device. We will see, I guess...

1. phone333

Posts: 331; Member since: Feb 04, 2009

-Ooooh poor Palm ! I think Sprint did a great job putting the products out there. Palm just built a pour quality Device WebOS is awesome but the the Pre hardware is just too cheap. The Pre picked up a good momentum in June-July until people started returning them for Screen cracks sound going out and LCD freezing If Palm numbers come up and they survive, hopefully the next Pre will be much more "Solid".

3. hmcougar09

Posts: 137; Member since: Jan 25, 2009

This is SO true, I had Verizon, until I decided to switch to Sprint and give the Pre a chance. The build quality was REALLY bad! Not even a week of having the phone [take into consideration that I haven't dropped it yet], the screen was already wiggly. I was unhappy and returned it. I am now back with Verizon and either plan on getting the Droid or the Storm 2? Any suggestions as to which I should get and why?

4. vzw fanman

Posts: 1977; Member since: Dec 11, 2008

it depends....do you like the black berry os? the bb browser sucks and so does their e-mail program...also if you like waiting forever once you do a bat pull then blackberrys are right for you. if you need bbm or the bes then blackberry is right for you...but if you want something different with much customization, and a great browser then i would go with the droid! :-)

5. phonatik

Posts: 21; Member since: Nov 09, 2009

Go for the Droid. I had the Storm 2 and it is a good device don't get me wrong, but lacks of customization not as many apps as with Android. Also the clicking part of the Storm 2 when your typing could get a bit annoying. Over all it's a good phone with great push email. I now have a Droid Eris and I love it! I am seriously though considering trying out the Pixi or Pre. I love the webos which I personally think it's the best in the market, and even though it lacks of apps, I would still give it a chance.

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