Palm hopes that Palm Pre became finances tumble


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Palm hopes that Palm Pre became finances tumble

Postby admin on Wed Mar 11, 2009 8:22 am

Palm released their preliminary Q3 financial report this week, and it only serves to underscore how important the Pre is to the company’s survival. Palm expects revenues for last quarter to be between $85 million and $90 million, potentially $70m less than Wall Street expected from them.

In fact, the original prediction had been revenues of $155m for the three month period up until February 27th 2009. Palm are blaming the difficult economic situation, later shipments of the Palm Treo Pro in the US than originally expected, and a general lowered interest in their “legacy” devices for the poor performance.

The much-anticipated launch of the Palm Pre remains on track for the first half of calendar year 2009, but as expected we’ve got a difficult transition period to work through. Despite the challenging market environment, the extraordinary response to the Palm Pre and the new Palm webOS reaffirms our confidence in our long-term prospects and our ability to reestablish Palm as the leading innovator in the growing smartphone market” Ed Colligan, President and Chief Executive Officer, Palm


Unsurprisingly, CEO Ed Colligan is pinning his hopes on the Palm Pre and its lightyear jump in both functionality and appeal over the current range of smartphones. According to Colligan, the Pre is still “on track” for its 1H09 launch, which gives them up until the end of June to get it onto shelves; until then, he’s warning the financial situation won’t be pretty.
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