Palm needs a hand as Q2 revenues see drastic decline
Things are not looking good for Palm as it continues to slide into dangerous territory amidst harsh economic times. The handset manufacturer announced imminent layoffs earlier this month and now it has released preliminary financial results for Q2 of the fiscal year 2009 which are abysmal at best. Palm’s revenue in Q2 looks as though it will come in just north of $190 million, an astounding 50+ percent drop off from Q1 in which the company took in $370 million in revenues. A statement from Ed Colligan, Palm’s president and CEO:
We are seeing unprecedented dynamics in the global markets as economic uncertainty hampers demand for consumer products. In order to ensure Palm’s long-term success during these uncertain times, we’re taking several steps to significantly reduce our cost structure. These measures will help us navigate this difficult period while launching our next-generation products as planned.
Palm has stated that it will be cutting its workforce and consolidating its offices in an effort to save an estimated $20 million per quarter but that will barely suffice at this point. Palm needs help, and fast, if it hopes to survive this tremendous downturn. Complete financials for Q2 FY09 will be announced on December 18.
Tags: Financials, Palm, Q2 2008, revenue
It is surprising, actually, that Palm has generated any revenue. The company should be very, very happy.
Permalink | Reply
Lol i agree to above. RIMM is actually suffering now because the market thinks that PALM’s shitty quarter could reflect on RIMM’s coming announcement.
Its like comparing apples and oranges IMO. speaking of Apple, they are targeting consumers is why iPhone sales will not decline as much as market. RIMM is dependent on too many corporations that are downsizing. I cant see them continuing on projected growth.
Permalink | Reply
What does Palm expect. No new OS in years. Wasted time and effort on the Foolio, that was never released.
Permalink | Reply
Instead of spending serious $$$ for a stupid ad on TV(Klauz and his Centro), they should refocus their marketing strategy immediately and jump inside the Android wagon asap. There are also rumors about HTC purchasing a cellular manufacturer in the US very soon. This might be the golden exit for palm…
Permalink | Reply
I don’t see how Palm can’t fire out a new handset. They have had more than ample time to whip up a handset & a new OS. Just look at Android, even half baked it took 1/100th the time Palm has been working on its new OS.
Crap, it took only a few months for a bunch of hackers to get Linux on the iPhone 3G!
Permalink | Reply
@ JoeS
I was watching CNBC this AM and laughed my ass off when the guy at NASDAQ said RIM and Apple were down because of Palm. If the analysts and traders knew anything, those shares would go up while Palm goes down due to an increased market share. Don’t they do their homework on Palm? It’s been a dog for years…with the same fleas. No inside information to figure that one out…
Permalink | Reply
Palms are huge bricks with ity bity keyboards… it’s no wonder they don’t sell.
Permalink | Reply
Excuse me, Palm, 2003 called, they said they want their operating system back. The 700’s were 650’s which were 600’s with a mediocre camera remade for CDMA, the 750 was the 3G version of the 650 with said camera, the 680 was a repackaged 650, the 755 was a repackaged 700, and don’t get me started on those Window Mobile Palms that were not any different than your competition. Oh, almost forgot-the Centro is like the best of 2003 to 2007 Palm phones in one.
Permalink | Reply
I have been a Palm user since the Palm III. I currently have a Centro. I like it. But jeez, how frickin’ long can it take to upgrade an OS? I’m not a Palm fanboy. Actually, if they went under, it would make my jump to another OS an easier decision. I think the Eagles will win the superbowl before Palm releases an new OS.
Permalink | Reply
Get your Superbowl tickets ready!
Permalink | Reply
Meh, can’t say I’m surprised. I’ve been using Palms since they were selling the Pilot 1000 and 5000, and started buying my own with the PalmPilot Professional (and later the IIIx upgrade card, the IIIc, and lately a Tungsten|T3).
I’ve seen practically no improvements in the OS in the 4.x years since I picked up the T3. They’ve completely abandoned the PDA market (like almost everyone else) to concentrate on smartphones, and even in that arena, they keep trying to inject collagen into the wrinkled leathery face of PalmOS. They’ve split and remerged the hw and sw divisions so many times, I can no longer enumerate all the iterations. Their next generation OS has been stillborn for years.
The final nail in the coffin for me was the realization that Palm themselves appear to have zero confidence in their own platform, and are now essentially just another Windows Mobile smartphone maker.
I *really* wanted a Palm smartphone, so that I could move all my data off the T3 to a phone and reduce the devices I carry, but even more, I wanted both Bluetooth *and* WiFi, a feat that Palm’s been unable to pull off in combination with a phone base.
If they go under…good riddance. I’ll shed a tear for the end of an era, but at this point, it’s more humane to let them die.
Permalink | Reply
“They are alone. They are a dying people; we should let them pass”
Permalink | Reply
I ditched found Palm in the form of the Kyocera 7135 (”Big Flipper”). My last Palm device was the Treo 700p and I must say there aren’t many improvements. I was thinking of getting the 750p, but again — nothing new. I went back to Black.
It’s good having a company that continues to put out improvements in some areas.
Permalink | Reply
Ever heard of a bologna hole for a dying dog? Grab shotgun. Dig hole. Throw in bologna. Call dog. Bang. Fill in hole.
Hey palm… commere palm. Commere good boy… go get the bologna.
(make sure you let dog eat bologna before pulling the trigger)
Permalink | Reply
If Palm continues to exist in some fashion, let it tinker with odds and ends, but there is no room for them at the smartphone table. Maybe 3Com is interested in picking them up for $.05 on the dollar? Can you here me now, Bono?
Palm … The best evidence ever offered in support of assisted-suicide.
Permalink | Reply
Palm is still around ????
Permalink | Reply
Sad to hear, how a big company can get complacent and fall back.
I wish they’d stayed cutting edge and innovated. Loved the convenience of touch screen and QWERTY keyboard without having to slide out and turn sideways.
Permalink | Reply