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Palm Halts Pre & Pixi Production

Gordon Kelly


Palm Halts Pre & Pixi Production

It seems that things are starting to snowball - and not in a good way...

Just four days since Palm announced its latest horrendous financial results American Banking News reports the company has now stopped productions of its Pre and Pixi smartphones. Palm has yet to comment on the news, despite the fact it sent the stock price tumbling 30 per cent to under $4 per share (it had been as high as $18 12 months ago).

Why has Palm done this? In short, because it is making phones faster than it can sell them. We know this because the biggest news in Palm's Q3 horror show was not the $22m loss, but that it had managed to sell just 408,000 of the 960,000 Pre/Pre Plus and Pixi/Pixi Plus models it shipped to telcos over the last three months. At that rate it would take Palm at least another four months to clear just its backlog and customer orders are hardly likely to increase given all the negative publicity currently going on.

On top of this the Examiner claims US telco partner Verizon has stopped promoting follow-up and flagship model the Palm Pre Plus to customers, instead pointing them in the direction of Android-based handsets like the Motorola Droid aka Milestone. On the plus side, Palm has just agreed a deal with rival US network AT&T to supply it with the Pre Plus and Pixi Plus, but again we'd have to question just how high demand will be.

Ultimately, it looks like the once great company simply took too long to reinvent itself and - once it had made that change - too long to get its new hardware onto the market (the Pre Plus and Pixi Plus still haven't launched outside the US). To which I repeat: dear Samsung and LG, you couldn't design good mobile phone software if your lives depended on it, so do the decent thing, snap up Palm and invest in web OS to make it the brilliant platform we all know it can be...

Update: Palm is disputing the report, so I'll get back to you when we have more.


via American Banking News

via the Examiner

AT&T deal via Betanews

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