BMO Capital analyst slaps ‘Sell’ rating on beleaguered Palm

Apple Online Store “Palm was slapped with a sell rating Tuesday on concerns that the new arrivals in the smartphone market will crowd out the Pre,” Scott Moritz reports for TheStreet.

MacDailyNews Take: Concerns? It’s a foregone conclusion. You know, you can read the analysts’ notes when the obvious finally runs them over after repeatedly slapping them in the face or you can read us much earlier; nine and a half months earlier in this case:

In our opinion, there isn’t room, nor is there a need for Palm in a market already crammed full of iPhone wannabes, to say nothing of the iPhone itself. There are more than enough pretend iPhones, thanks… Palm simply does not have the any resources which with to compete against Apple.MacDailyNews Take, January 09, 2009

Moritz continues, “The heroic makeover of Palm is facing a significant challenge as telcos like Verizon and AT&T align behind Apple, Research In Motion and phones built on the Google Android operating system, shoving Palm into fourth place among suppliers, writes BMO Capital Markets analyst Tim Long in a research note Tuesday.”

“The heavy competition and the fading popularity of the Pre phone along with the potential cannibalization of Pre by the Pixi next month does not bode well for Palm, Long notes,” Moritz reports. “‘We believe that the company will miss its guidance for the second half of fiscal 2010,’ writes Long.”

Full article here.

12 Comments

  1. Did the makers of new smartphones not learn anything from iPod history. They will not take share from Apple’s product. If there are two or twenty other phones, they will be fighting each other for some of the “other” category, the non-iPhone leftovers.

  2. B…b…b…but Multitasking!

    Sorry. Couldn’t resist. It happens every time I read a story about Palm. The Pre fanboys droned on and on and on about how the Pre was soooooooo much better than the iPhone because of it’s multitasking. I’m just amazed that such desperately valuable function is not leading the way to Palm’s success. Wan’t the Pre supposed to have killed the iPhone by now? Wasn’t it going to buy the iPhone with it’s multitasking goodness?

    Perhaps the CEO of Palm sell the company and give the money back to their stockholders.

  3. On a related note, anyone heard anything further on the iTunes synchronization kerfuffle? Last I saw from earlier this month, Palm was still openly defying the USB Implementer’s Forum by continuing to use Apple’s USB vendor ID.

    I’m assuming there’s been some kind of closed-door negotiation taking place since then, but it can’t be helping Palm’s future outlook to know that they almost certainly have the USB-IF mad at them, along with all their other problems.

  4. ok, i love the macs, i’m on your side.

    … but why is that it whenever an ‘analyst’ disses Apple you slam them, but when the same ‘analysts’ come down on MS you throw in to the toes?

    MDN writes smart, why don’t you play smart?

  5. I am a little shocked Palm has lasted THIS long….I give them lots of credit for hanging in….it is a wasted effort and the writing is on the wall but at least it gave all the employees lots of company time to update their resume and grab some office supplies on the way out the door.

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