Palm’s phone sales plummet; stock hammered

[*LTD*]

http://finance.yahoo.com/news/Palms-phone-sales-slump-and-apf-2678760806.html?x=0

Beleaguered Palm’s phone sales plummet; stock hammered
Thursday, March 18, 2010 - 05:51 PM EDT

"Palm Inc. on Thursday reported sales figures that showed it's having a difficult time getting consumers to pay attention to its phones in a market dominated by iPhones and BlackBerrys. The company's shares plunged in after-hours trading," Peter Svensson reports for The Associated Press.

"The company shipped 960,000 smart phones to stores and distributors in the quarter that ended Feb. 26, 23 percent more than in the previous quarter. However, the number of phones that were actually bought by consumers was 408,000, down 29 percent from the previous quarter," Svensson reports. "By comparison, Apple sold 8.7 million iPhones in its most recent quarter."

Svensson continues, "Palm reported a loss of $22 million, or 13 cents per share, for the quarter, its fiscal third. But that was mitigated by an accounting effect brought about by the recent drop in Palm's stock price. Excluding that effect, the loss was $102.8 million, or 61 cents per share. In the same period a year ago Palm lost $98 million, or 89 cents per share."

"After the release of the results, [PALM] shares fell 72 cents, nearly 13 percent, to $4.93 in after-hours trading," Svensson reports. "That would be a 52-week low."


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I'll take it for fifty bucks.

Anyone else?

 

[rdowns]

You can get the Droid for $25 with a 2 year contract.

Sad thing is, no one seems to even want Palm's technology.

 

[zap2]

You can get the Droid for $25 with a 2 year contract.

Sad thing is, no one seems to even want Palm's technology.

I'd kill for an unlocked GSM WebOS phone with a keyboard...I love my Treo Pro's keyboard.

Give me a Pixi(or Pre) Plus unlocked, I'd buy it today

 

[Rodimus Prime]

I'd kill for an unlocked GSM WebOS phone with a keyboard...I love my Treo Pro's keyboard.

Give me a Pixi(or Pre) Plus unlocked, I'd buy it today

Rumor is the Pre is coming to AT&T and T-Mobile.

 

[zap2]

Rumor is the Pre is coming to AT&T and T-Mobile.

Ya, originally reported for April or May(for AT&T), most recent rumor is a push back for June/July.

Pretty disappointing...at that point, it had better be a Pre 2. While the iPhone 3Gs and Pre Plus are pretty similar upgrades from iPhone 3G and Pre, Palm isn't in the same market position as Apple, and has to bring more to the table.

 

[Consultant]

I'd kill for an unlocked GSM WebOS phone with a keyboard...I love my Treo Pro's keyboard.

Give me a Pixi(or Pre) Plus unlocked, I'd buy it today

The problem is Palm's implementation of keyboard sliding is prone to breakage.

 

[*LTD*]

Even if Palm spreads the Pre in its current form to other carriers, the Pre's time has come and gone.

What Palm *might* need (not that it's a guaranteed save) is a brand new Pre, one that really turns the game on its head. Then there's the inevitable comparisons to the iPhone, which presents difficulties in terms of mindshare, etc.

The Pre is a nice phone (really only in terms of its OS), whose development and marketing was horribly mishandled by Palm.

 

[LethalWolfe]

Even if Palm spreads the Pre in its current form to other carriers, the Pre's time has come and gone.

What Palm *might* need (not that it's a guaranteed save) is a brand new Pre, one that really turns the game on its head. Then there's the inevitable comparisons to the iPhone, which presents difficulties in terms of mindshare, etc.

The Pre is a nice phone (really only in terms of its OS), whose development and marketing was horribly mishandled by Palm.

Everyone is assuming a Pre 2 update this summer and there is a 'mystery phone' called Palm C40 that has been spotted in Sprint's data base. The rumor/assumption is that it's a the next handset in the WebOS family.

Who knows if Palm has enough money to advertise enough to compete. If they don't hopefully they get swallowed up by someone that doesn't get in the way of WebOS development. Competition, FTW.


Lethal

 

[zap2]

The problem is Palm's implementation of keyboard sliding is prone to breakage.

I've heard that, but I've not seen real data from a reliable source...I have no doubt it happens, but I'm interested what percentage of Pre it effects.

But yea, the Pixi for me bets the Pre because of my fear of moving parts.

 

[Consultant]

I've heard that, but I've not seen real data from a reliable source...I have no doubt it happens, but I'm interested what percentage of Pre it effects.

But yea, the Pixi for me bets the Pre because of my fear of moving parts.

This video contains the basic problems
http://www.youtube.com/watch?v=p4xkdqOxh-Y

I almost wrote an article, but not sure where I put the research info.

Edit: CNET, http://news.cnet.com/8301-17938_105-10259462-1.html

 

[mags631]

I don't buy the rumors about an acquisition either. Let's see:

Google: no reason -- they have an OS; if Palm's patent portfolio was truly valuable, wouldn't they be using it now?

Dell: I don't see Dell taking on the risk / expense of maintaining a separate software platform. That's not their strength. If they can license something like Android cheaply, why buy Palm?

Nokia: they have their own platform: Symbian / Maemo.

RIMM: maybe. But, I think RIMM is all in on their own platform -- and it's successful in its own right. I don't see a compelling reason for them to do this.

The market has a lot of choice -- I think Palm goes away. Maybe their patents get taken by a troll who tries to extract whatever remaining value is in them.

 

[DrStrange]

i feel sorry for Palm.

 

[LethalWolfe]

I've heard that, but I've not seen real data from a reliable source...I have no doubt it happens, but I'm interested what percentage of Pre it effects.

The first batch of Pre's could develop some play in the slider causing an unsettling twisting motion, but I never heard of anyones phone breaking because of this. Some phones also went out w/a battery door that was slightly too big on the inside so the battery wasn't firmly held in place. The impact of opening or closing the slider could jar the battery enough to disengage it from the contacts.

Both were known issues so getting replacements was a breeze unless the specific rep you were dealing w/was a tool.

Imagine that, first off the assembly line, Rev A products with some flaws.


Lethal

 

[kdarling]

I haven't seen complaints about the Pre keyboard in months. Didn't things get fixed in later production runs? Of course, the Pixi's keyboard wouldn't have any sliding problems.

The Pre and Pixi are nice little units with a fun OS, easy multitasking and a terrific browser. I wonder why some people want to bash them. Maybe it's just easier to side with other companies which are more successful.

It'd be a real shame if Palm went under.

 

[*LTD*]

It'd be a real shame if Palm went under.

In light of the iTunes syncing fiasco they started, and kept pushing, I wouldn't shed a tear.

 

[talkingfuture]

Apple have so much cash they could buy Palm just to fire the people who moved from Apple to Palm!

On a serious note I wonder if there is anything in Palm that Apple could use for the iPhone. Web OS seems fairly well rated, could some of its features be integrated to the iPhone?

 

[roadbloc]

Thats a shame. My friend has a Palm Pre, and it is a really neat smartphone. I thought the OS on it was much more usable and flexible than the iPhone OS.

Ahh well... easy come, easy go. I'd never buy a smartphone anyway, especially a touchscreen one so I'm not too bothered. I just think it's odd how a phone that can do a hell of a lot more than the iPhone is struggling.

 

[maflynn]

Palm is an afterthought in the iPhone/google world at this point. Blackberry is the 800 pound gorilla and they're working hard at making sure they don't lose anymore market share.

Microsoft's stuff, like palm is not being taken seriously, the difference between palm and MS is that Microsoft has a ton of cash. They're in it for long haul, Palm cannot survive in the long haul.

Apple and Google are the media darlings and produce the sexy devices that people want.

Palm's prospects are dim, at best. They're not selling well at verizon, ATT is not about to spend a ton of money on marketing them, and risk pissing off apple.

One of their biggest problems, imo is their phones. Yeah the OS has some advantages over the iPhone's but their phones felt cheap and plasticy. I'm spending a lot of money on a phone/contract and I want to be sure it will hold up. A plastic display, a slider that could easily break and tiny little keys mean that the phone is not that well designed.

 

[Jett0516]

i feel sorry for Palm.

don't be.

I had the palm pre for 7 months. it was a good multitasking phone but thats where it end. when the Pre was launched it was missing about of stuff like video camera, native apps, voice record etc. things you would find standard on a dumb phone.

you figure Palm whos in the phone market longer than most out there that they would get it right on the first ever major phone release but no they failed.

 

[OllyW]

when the Pre was launched it was missing about of stuff like video camera, native apps, voice record etc. things you would find standard on a dumb phone.

How dare they copy the iPhone!

 

[mags631]

Apple have so much cash they could buy Palm just to fire the people who moved from Apple to Palm!

On a serious note I wonder if there is anything in Palm that Apple could use for the iPhone. Web OS seems fairly well rated, could some of its features be integrated to the iPhone?

People or patents. And I think the answer is no on both.

 

[jaw04005]

PALM closed at $4 per share today.

It’s sad seeing an icon company like Palm die. Marketwatch reports that 8 out of the 10 big analysts have a sell rating on PALM.

http://www.marketwatch.com/story/palm-plunges-on-woeful-sales-forecast-2010-03-19?dist=afterbell

RIM should buy them. They need a new, modern Blackberry OS anyway.

 

[Consultant]

Palm is downgraded to $0 today by an analyst.

Market cap today around $600 million.

Apple Market cap is around $200 billion.

Thats a shame. My friend has a Palm Pre, and it is a really neat smartphone. I thought the OS on it was much more usable and flexible than the iPhone OS.

That's not what most reviewers said once they get their hands on the palm pre.

 

[jaw04005]

"Elevation, a private equity firm that includes U2 lead singer Bono among its partners, has made three more investments in Palm since its initial deal, buying common stock, convertible preferred shares and warrants.

Elevation, which now controls roughly 30 percent of Palm, has also named former Apple executives Fred Anderson and Roger McNamee to Palm's 7-member board.

While Palm's share price has plunged 72 percent since the first deal in June 2007, the value of Elevation's investment has been maintained by the terms of the original deals.

Palm's filings show that Elevation has invested a total of $460 million in the company, an investment that is worth $432 million today based on Friday's close of $4.00.”

http://www.reuters.com/article/idUSN1916520720100319

Too bad it doesn’t work that way for PALM shareholders.

 

[zap2]

That's not what most reviewers said once they get their hands on the palm pre.

What reviewers? WebOS was reviewed very well by sites like Brighthand, Engadget, and Gizmodo, etc

The hardware had some flaws, but WebOS is some very strong software(I think you can make an argument its the best mobile OS out today)

In light of the iTunes syncing fiasco they started, and kept pushing, I wouldn't shed a tear.

To judge Palm, who has had a 20 year history of defining mobile computer, on that one event would be missing a lot of what Palm brings to the industry.