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

Posted: , by Alan F.

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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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posted on 20 Oct 2010, 01:44

1. phone333 (Posts: 331; Member since: 04 Feb 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".

posted on 18 Dec 2009, 08:18

3. hmcougar09 (Posts: 137; Member since: 25 Jan 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?

posted on 18 Dec 2009, 10:23

4. vzw fanman (Posts: 1976; Member since: 11 Dec 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! :-)

posted on 18 Dec 2009, 10:30

5. phonatik (Posts: 21; Member since: 09 Nov 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.

posted on 18 Dec 2009, 05:04

2. BigRed83 (Posts: 144; Member since: 19 May 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...

posted on 18 Dec 2009, 11:40

6. DonLouie (Posts: 594; Member since: 22 Dec 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

posted on 18 Dec 2009, 16:11

7. rjt185 (Posts: 257; Member since: 11 Jun 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.

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