Franklin Paul reports for Reuters, “It could be a rough holiday season for shareholders of Palm Inc as they wait to see if new smartphones can compete with the likes of Apple’s iPhone… What had so far been a few golden months for Palm was somewhat tarnished on Thursday, when its revenue forecast for the current quarter missed Wall Street expectations by far — even as results for the last three months — its first fiscal quarter — beat many forecasts.”
“Analysts have said they believe demand for Palm’s new star handset, the Pre, is dying down after a highly anticipated launch in June. Palm, which cut the price of the Pre by $50 recently, continues to keep its sales figures under wraps,” Paul reports. “‘The anticipated slowdown in Pre sales appears to be occurring, one quarter later than many had anticipated,’ said CL King analyst Lawrence Harris.”
Paul reports, “Any lost momentum by Palm comes at a critical time, just ahead of the holiday shopping season, when the Pre and Pixi — Palm’s next device based on its webOS platform — take on popular handsets from Apple Inc, Research in Motion, and Motorola Inc.”
MacDailyNews Take: Yeah, Motorola. Give us a break.
Paul continues, “Analysts warned that Palm’s uphill fight may further stall any shot at profitability, particularly after the Pre price cut. BMO Capital analyst Tim Long [said], ‘Sprint said … (the price cut) came from Palm, which we view as a sign that maintaining average selling prices and gross margins may also be difficult.'”
“BlackBerry maker Research In Motion has also faced analyst and investor questions about whether it can keep up its torrid pace of growth despite the recession,” Paul reports. “The Waterloo, Ontario-based company is due to report quarterly results on September 24.”
Full article here.