Fiscal year sales will not hit the $1.6bn to $1.8bn predicted.
Palm boss Jon Rubinstein told Wall Street that revenue from the Pre and Pixi has dried up after an initial surge, and should hit $300-$320 million in fiscal Q3. Pal had prejected $1.6-1.8 billion for the full year, but won't hit that now.
Rubinstein said: "Our softer than expected performance is due to slower than expected customer adoption of our products, which in turn has prompted our US. carrier partners to put additional orders on hold for the time being.
"On a positive note, we expect to exit the quarter with over $500 million in cash on our balance sheet. We’re scheduled to announce our full financial results in March."
He added that Verizon WirelessHe added that Verizon Wireless had re-committed to the device range and explained how Pal had initiated Project JumpStart to boost sales. This involves 200 Palm Brand Ambassadors going out to demo the handsets to the public.
Palm deserves credit for its efforts, but it's caught between iPhone, Android and RIM in the US, and in the rest of the world Palm has never had the profile it enjoys in the States.
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