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View Full Version : With Lowered Sales Expectations, Palm Runs Out of Options


leomac08
Feb 25, 2010, 01:30 PM
Palm.....(the cellphone maker i.e Palm Pre, and Palm Pixi on Sprint and Verizon) is in the hot seat. Stocks are low and sales are in bad shape. Their webOS is failing, badly. They don't have any revenue and they need a buyer before they go out of business ASAP!:rolleyes:

http://gizmodo.com/5480098/with-lowered-sales-expectations-palm-runs-out-of-options

When Palm issued a release announcing lowered guidance and sales expectations for this year, Jon Rubinstein didn't even try to cushion it, admitting, "driving broad consumer adoption of Palm products is taking longer than [he] anticipated." OK. Now what?

The implication of "longer than expected" is that success will come if everyone just waits long enough. But to say something like that in February of 2010, over seven months after the Pre launch, three after the Pixi launch, and weeks after a by all counts anemic launch for their barely differentiated Verizon counterparts is to tacitly admit that there's a serious problem. If Palm's current lineup doesn't have momentum now, it never will—and their investors know it.

For Palm, this leaves two options: either build a new product—something they may not be able or positioned to do—and hope it's a wild success; or sell out. So who's buying? BusinessInsider throws the regular suspects on the table—RIM, Nokia, Dell, HP—but they seem chosen because they'd be interesting buyers, not because they've shown any real interest. Hey, wouldn't it be neat if Nokia or BlackBerry absorbed webOS, so they could both have truly modern, user-friendly smartphone operating systems? Yeah it would! Someone should tell them.

This leaves Palm with nothing to do but wait: to die; or to be saved by a hero it hasn't even glimpsed yet, and that probably doesn't exist

jaw04005
Feb 25, 2010, 02:00 PM
Sigh. The WebOS is a good product.

It makes you wonder when Tim Cook said Apple looked at bigger companies to acquire but they didnít pass their internal test, if he was talking about Palm.

Rubinstein should ask for his old job back.

leomac08
Feb 25, 2010, 02:06 PM
Sigh. The WebOS is a good product.

It makes you wonder when Tim Cook said Apple looked at bigger companies to acquire but they didnít pass their internal test, if he was talking about Palm.

Rubinstein should ask for his old job back.

It's a bite in the as* for Rubenstein. The iPod is doing wayyyy better than the Palm.

I looked at there wikipedia page.... and everything was down! even there employees!:eek:

mkrishnan
Feb 25, 2010, 02:09 PM
Palm: We're the Chrysler of the Electronics Industry?

eastercat
Feb 25, 2010, 02:55 PM
A friend of mine has the Pre. If Palm keels over, does this mean he loses support for his phone? :confused:

racers
Feb 25, 2010, 03:27 PM
A friend of mine has the Pre. If Palm keels over, does this mean he loses support for his phone? :confused:

Unless someone buys them yup your friend will lose support

leomac08
Feb 25, 2010, 03:35 PM
A friend of mine has the Pre. If Palm keels over, does this mean he loses support for his phone? :confused:

yeah he does.....that's why it's important.

Palm: We're the Chrysler of the Electronics Industry?

That will be funny if the Government Bails them out! :D but very very unlikely.

quagmire
Feb 25, 2010, 03:42 PM
That will be funny if the Government Bails them out! :D but very very unlikely.

I think he meant it as no matter how many times Chrysler has restructured, they always seem to be back in trouble( Daimler is the reason why they are in trouble now). Same with Palm.

;)

iShater
Feb 25, 2010, 03:47 PM
It is just sad to see the state of Palm. They had a good thing going, and somehow (OS outdated :rolleyes: ) totally dropped the ball.


Having the Pre be CDMA only sux.

rdowns
Feb 25, 2010, 03:56 PM
Where's Palm Pimp? :D

Ouch.

iOrlando
Feb 25, 2010, 04:13 PM
i think you are rushing to judgment just a tad.

Palm's sugar daddy- Elevation Partners- will not let the thing die anytime soon. If they ever need more money and they cant raise equity, I'm sure Elevation would make something work. They still have a few hundred million dollars anyway. They basically need better advertising and newer products.

Don't you guys remember Apple's financial state in the mid 1990s?

Abstract
Feb 25, 2010, 05:06 PM
Palm has a great product and not many customers. It's a shame.

rdowns
Feb 25, 2010, 05:31 PM
Palm has a great product and not many customers. It's a shame.


Sadly, the better product often loses.

leomac08
Feb 26, 2010, 12:16 AM
Sadly, the better product often loses.

Well then.... the iPhone is a good product.....

i think you are rushing to judgment just a tad.

Don't you guys remember Apple's financial state in the mid 1990s?

No, somehow I don't remember.....:D do you mind telling us?

erickkoch
Feb 26, 2010, 10:37 AM
I like my Pre and have few issues with it. My main complaint was the iPod hack doesn't work anymore (it used to mimic an iPod before Apple nixed that function). Battery life could be better but it's an excellent smart phone.

jaw04005
Feb 26, 2010, 12:13 PM
No, somehow I don't remember.....:D do you mind telling us?

I want to say Apple’s stock got down to around $12 a share (or maybe lower) in 1997 even after Jobs’ took over the company.

1993-1997 were not good years for Apple.

Go back and read new stories from late 1996 and 1997. They’re really interesting from a business perspective.

In a span of about a year, Jobs got Amelio to trust him, got Apple to purchase NeXT, sold all his newly received Apple shares to undermine Amelio and Apple’s board with shareholders, took over as CEO, got most of Apple’s board to resign, restocked it with people he trusted (Larry Ellison, Bill Campbell, etc) and called Bill Gates and orchestrated a giant publicity stunt where Microsoft would invest 150 million in Apple. Therefore, shoring up investors and showing them he could get things done, not to mention saving Microsoft from the DOJ (Look DOJ, we have competition … see we even invested in them!).

Oh yeah and he killed the clones and the Newton that year also.

The entire saga was brilliant. Maybe Palm will get the same kind of rebirth.

dacreativeguy
Feb 26, 2010, 01:43 PM
Don't you guys remember Apple's financial state in the mid 1990s?

I know Apple. Apple is a good friend of mine. And I can tell you, sir, that Palm is no Apple. :)

dmr727
Feb 26, 2010, 01:46 PM
The entire saga was brilliant. Maybe Palm will get the same kind of rebirth.

If Palm can pull itself out of this, their stock could be a pretty good buy. It's tempting, that's for sure.