Beleaguered Palm’s ‘Pre’ sales continuing to slow; likely to miss Sprint’s internal target

Apple Online Store Eric Savitz wonders for Barron’s, “Is the Palm Pre a bust?”

MacDailyNews Take: Does the iPhone have Multi-Touch™?

Savitz continues, “Town Hall Investment Research analyst David Eller asserted in a research note this morning that sales of the Pre ‘are continuing to slow,’ and ‘likely will come in dramatically below’ Sprint’s reputed target of 1 million to 1.5 million customers for the year. Eller now sees the company selling 416,000 units in the August quarter overall, down from a previous estimate of 488,000. For the November quarter, Eller expects the company to ship 785,000 units.”

“The reduced estimates, Eller contends, is less a failure on the part of Palm as ‘overly ambitious expectations in the face of a weak retail spending environment, competition from the iPhone 3Gs’ and the slowing development of the Palm rival to the Apple App Store,” Savitz reports. “Eller adds that ‘with the Palm’s fade,’ takeover talk is also likely to evaporate. As the world realizes that the WebOS is ‘good but not mature enough for developers,’ he adds, ‘Palm’s strategic value to potential acquirers diminishes.'”

MacDailyNews Take: Uh, oh, now even the original intent of the Pre/WebOS — takeover bait — is fading away just like the company itself.

Full article here.

MacDailyNews Take: If they couldn’t cut it at Apple in the first place, why would anyone think that a bunch of castoffs would be able to compete?


  1. Of the 416,000, how many went to replace defective ones?

    I still see the fact that the Pre can only run html/java/css based apps as its biggest problem. But if they allowed true native apps, the multi-tasking that they boast will surely drain the battery exponentially faster than it does now.

  2. I loved my Palm PDAs. They had an excellent software package for the Mac. So I had a bit of a soft spot for Palm.

    But Apple and RIM aren’t seeing any effect from weak retail spending. It’s just an excuse. And there is no reason Palm couldn’t have come out with the Pre 3 years ago, but, like Microsoft, they let bloodless, unimaginative sales weasels push for expansion of markets at the expense of improving the product.

    I feel no remorse for Palm.

  3. “If they couldn’t cut it at Apple in the first place, why would anyone think that a bunch of castoffs would be able to compete?” – MDN

    I enjoy MDN takes when they clarify and elucidate. And I guess some people must love the way you bash everything not Apple. But personally, I could do without thoughtless and cruel remarks like those above.

  4. Though I doubt that Jon Rubinstein is welcomed on the Apple campus today, he is not a casts-off. He was burned out and retired from Apple against Jobs’ wishes. Steve wanted to keep him. I can appreciate a snide comment as well as the next person, but let’s not get too personally insulting. Rubinstein is a formidable foe. It would be foolish underestimation to think otherwise.

  5. @ Falkirk

    Yada, Yada, Yada, There are other sites you know. I love the thoughtless, brain dead, over-the top MDN spin. Really, it truly makes my day. Especially when I remember all the crap I took from the PC lemmings year, after year, after year…. even though I knew I was on a much better computing platform, So, please! Bring it on MDN!!!

  6. Poor Palm.

    I was a die-hard palm-pilot user in the mid 90s. I would get weird looks when I brought it to meetings–and then I started to see more in the meetings. It was “IT”, then, like the iPhone is IT now.

    Apple is a juggernaut. They just have a good feel for what people want and how they want it–although they sometimes need convincing.

    When you put the user experience ahead of everything else, you just can’t lose.

  7. @Chanson de Roland
    Yeah I can tell by his success with the Palm Pre… he’s a real force to be reckoned with. Let’s see, he trying to steal Apple’s iTunes user base, He’s suing Apple over the right to squat on the iPod, He boasted that his me-too phone was an ipone killer,… yeah! he’s a real piece of crap art. Burned out huh? But not burned out enough to start-up a whole new operation for a competitor, while leaching ideas & secrets from his former employer! CRAPOLA!

  8. Psystar = Jon Rubenstein = Steve Ballmer = weak, ineffective, braggadocious dolts whose idea of creativity is to mimic everything Apple does . . . and then call it THEIR idea!

    None of the above have earned or deserve one iota of sympathy or admiration. Move along, Roland: nothing to see (or praise) with any of these guys. Just rotting enterprises.

  9. Falkirk:

    Cruel ??? Get a life what do you call the backstabbing unethical behavior of the Apple has beens, especially Rubenstein, who was let into Apples administration’s confidence?

  10. “I still see the fact that the Pre can only run html/java/css based apps as its biggest problem.”

    As I recall, people yelled and screamed at Apple when the original iPhone only supported web apps, but yet, no mass outrage has been focused at Palm. Must be because people either know that real apps exist on the iPhone, or that they simply don’t care about the Pre.

    Another of Palm’s problems is that it tied up to Sprint. I’m sure that’s not helping sales one bit.

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.