Beleaguered Palm restarts Pre assembly in China

Apple Online Store “Three weeks after confirming that its Chinese manufacturing partners had suspended production of the Pre and Pre-Plus, it appears Palm is back on track,” Jim Goldman reports for CNBC.

“Curiously, and despite the controversy surrounding the manufacturing suspension, Palm didn’t formally announce that production has resumed. Instead, the news was disclosed on the personal blog of Palm’s vice president of communications, responding to a purported query from a reader,” Goldman reports. “‘I haven’t seen a press release regarding manufacturing. Has it started up again?’ the reader asks? Palm’s vice president of corporate communications Lynn Fox responds: ‘Yes. We started the line back up at the end of February.’ Another post asks, ‘If the production lines have been restarted, why not formally announce it?’ Fox responds, ‘That is not the sort of thing a company announces.’ Is the query real? Or was this Palm’s strange way of getting the news out without issuing a formal press release? Inquiring minds want to know.”

“Either way, given the drubbing Palm shares have suffered over the past week, and the controversial nature of the original manufacturing shutdown, you’d think a resumption of production is precisely the kind of thing a company in Palm’s dire situation would want to call attention to,” Goldman writes. “And far more formally than something in a personal blog post… I asked Fox about the manufacturing news, and she responded: ‘Yes, I can confirm that manufacturing is back up and running.'”

Read the full article for more info here.

MacDailyNews Take: What a train wreck. Beleaguered Palm makes Microsoft look well-managed.


  1. If you make tanhe announcement to the press, someone is going to ask, “are you producing phones at the same speed?”

    Maybe that’s not a question they wish to deal with right now.

  2. Smoke and Mirrors is all that Palm has left.
    And Foxx’s comments are just that Smoke and Mirrors.
    Blowing Smoke up the presses bottom while showing them a shiny mirror, the goal a bit of good free advertisement and the hope of clearing some back stock and free up some cash currently tied up in inventory.

  3. Just what makes that little old ant
    Think he’ll move that rubber tree plant
    Anyone knows an ant, can’t
    Move a rubber tree plant

    But he’s got high hopes, he’s got high hopes
    He’s got high APPLE pie, in the sky hopes

  4. Just more evidence that Palm cannot be trusted.

    I have a tall banner ad on the right side of MDN – for ‘8 second demos of Internet Explorer’ – with the tag: “Browse with confidence”.

    Nice to see Microsoft being so canny about putting their ad money where it will be most effective….

  5. The thing that strikes me is no one has snatched up Palm yet. I think many other companies have already invested in development of Android suitable hardware and see Palm as unnecessary. Who ever buys Palm would have to honor any outstanding orders and also support Palm devises for a significant period of time. Which makes me wonder, wouldn’t Verizon be a logical purchaser of Palm. It would guarantee them a competitor to the iPhone that they had control over. Although I think Apple should just buy Palm for their patent portfolio. Run them as a subsidiary for 3-5 years then shut them down.

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