Smart phones sold to retail customers totaled 408,000 units, down 15% from a year earlier and 29% sequentially
By some estimates, Apple pre-sold more iPads online in one week than Palm sold smartphones through Sprint and Verizon stores in 3 months. What’s more remarkable is that year-on-year decline implies Palm sold more Windows Mobile devices than WebOS which was not on the market a year ago.
link: Palm Narrows Loss but Retail Sales Decline – WSJ.com
- The company said there are over 2,000 apps in the Palm App Catalog.
- ASP was $367, down from $375.
- Almost all volume was from WebOS products (Windows Mobile devices are gone)
- For Q4, the company expects revenue to be less than $150 million.
- Q4 gross margin likely in the mid-teens.
- Guidance for $150 million in revenue, down 57% sequentially.
After hours market cap for Palm is about $833 million down 13%. Expected revenue and ASP imply about 410k units will be sold into the channel in the following quarter.
[Donna Dubinsky] called the decision to spin off PalmOS a “huge strategic error.” “As RIM, Apple and Palm all have demonstrated, these devices need to be highly integrated hardware and software developments in order to optimize the user experience,” Dubinsky wrote in an e-mail to The Associated Press. “When Palm no longer could advance the OS, and had to create a new one, it lost several years.”
Donna gets it.
link: Palm Inc. teeters in crowded smart phone market – Yahoo! Finance
[Rob Glaser] said with those “super” abilities, mobile has a great potential, but if Apple gets its way, the wireless industry could end up like the MP3 industry. The other option is for things to go the way of the PC, which he considers more horizontal.
“As of today, Apple is the clear winner. It’s incredible what they’ve been able to do in a vertical paradigm,”
link: Former RealNetwork’s CEO Rob Glaser Says For Now Apple Has Won – Yahoo! Finance
Sorry Rob, you’re still missing the whole point. It’s not incredible, it’s the only way to go. What’s incredible is that anybody tried to do it differently.
Cusick says his checks find Palm is getting only about 1% share of handset sales at Verizon Wireless, or about 10,000 units a week, versus 400,000 units that were sold in to the company. At this rate, he says, there is “no prospect of Verizon follow-through” in the May quarter – and he sees weak sell-in at AT&T in the quarter as well. (AT&T has said plans to launch a Palm phone, but no timetable has been announced, I would add.) He sees Sprint launching other new smart phones soon, “which would reduce Palm’s share even further.”
link: Palm: Macquarie Downgrades; Cuts Target To $4, From $10 – Tech Trader Daily – Barrons.com
Stepping back into the wayback machine to read analyst commentary from 6 months prior to the launch of WebOS (June 27th, 2008):
In a report form Deutsche Bank’s (Sell rating). They noted that 38% of the shares were sold short, while 10 holders account for almost 70% of the shares outstanding.
In Deutsche Bank’s view, Palm’s future would be “entirely dependent on their new products, services and operating system,” all due next year. “If these turn out to be good, then the stock could do well,” he says. “If the new entries are not attractive, then Palm risks bankruptcy.”
BlackBerry – BlackBerry Loves U2
Last year U2 chose Research in Motion as the main sponsor for its tour.
Read More: Wired.com
Blackberry might love U2 but does Bono still like Palm?
You might know Elevation for its most famous partner, U2′s Bono. In the summer of 2007, the firm committed $325 million to Palm in exchange for a 25% stake in the ailing handheld computing pioneer. By the following winter, the partners would up their investment by another $100 million.
Elevation has since sold some of its preferred stock, but according to Palm’s SEC filings, it still holds enough common and preferred shares to account for roughly 30% of the business.
Others who bought around the same time as Elevation are struggling with a 33% loss, and that’s after accounting for a $9-per-share dividend.
Read more: fool.com
Maybe Bono should pick up his Blackberry in between gigs and work on a deal between RIM and Palm.
Palm: Pacific Crest Downgrades; Merrill Cuts Target To $5; Needham Fears “Oblivion” – Tech Trader Daily – Barrons.com
Palm unveiled the webOS and Pre on Jan. 8th, and the stock skyrocketed from $3.30/share the day before to $7.14/share on Jan. 15th.
January 2009 predictions for Palm by Morgan Keegan:
About Palm at Sprint: Storm/iPhone-type Success At Sprint For the Palm Pre Would Lead to About 630k-1mm/quarter
Our 450k/quarter Estimate For Pre Look Wholly Realistic Based On Success Of Other “Hero” Campaigns
Your correspondent, January 2009:
Now that the land grab is over, expect Bono to get his payoff as Palm gets acquired by a hardware vendor desperate for relevance. As Motorola is on its knees, my bet would be on Samsung, though a bidding war with Sony Ericsson would not be a surprise.
Now I’m not so sure. Faucette of Pacific Crest today:
While we believe that Palm could ultimately be a very attractive acquisition target, we are concerned that if the company is not prudent in maintaining balance-sheet resources, any potential acquirer may be content to just wait until things become even more desperate.