Its smartphones are shipping, but many aren't selling.
Palm has announced results for its fiscal third quarter, which ended on 26th February. Having warned the markets that they wouldn't be pretty, the company delivered on its promise.
Palm posted revenues of $349.9 million for the quarter, and reported a GAAP net loss of $22 million, compared to a net loss of $13.7 million the previous quarter.
But here's the really worrying figures for Palm. It shipped 960,000 smartphones during its Q3, but only sold 408,000 of them. The latter figure is down 15% year-on-year, despite several webOS handsets having launched in that period.
"Our recent underperformance has been very disappointing, but the potential for Palm remains strong," says CEO Jon Rubinstein.
"The work we're doing to improve sales is having an impact, we're making great progress on future products, and we're looking forward to upcoming launches with new carrier partners."
Article continues belowAdvertisement
Expect those 'Palm to get bought' rumours to be ever-present in the coming months.
The frustrating thing for mobile entertainment companies is that webOS handsets are punching above their weight when it comes to app downloads, particularly for games.
Both Gameloft and Glu Mobile have told ME in recent months that they're chuffed with the revenues they're seeing from Palm's App Catalog store, for example.
But if sales continue to underperform, webOS may slip down the priority list for developers, further reducing the appeal of Palm's smartphones.
