Palm phone facing sales difficulty

Palm Inc.’s latest report showed that its products are facing a time getting the consumers’ attraction in a market dominated by iPhones and BlackBerrys.

“Our recent under performance has been very disappointing, but the potential for Palm remains strong,” Palm CEO Jon Rubinstein said in a statement. The company shipped 960,000 smart phones to stores and distributors in the quarter that ended Feb. 26, 23 percent more than in the previous quarter. However, the number of phones that were actually bought by consumers was 408,000, down 29 percent from the previous quarter. By comparison, Apple sold 8.7 million iPhones in its most recent quarter.

Palm reported a loss of $22 million, or 13 cents per share, for the quarter, its fiscal third. But that was mitigated by an accounting effect brought about by the recent drop in Palm’s stock price. Excluding that effect, the loss was $102.8 million, or 61 cents per share.

The latest revenue figure was above Palm’s own forecast, issued less than a month ago, for $285 million to $310 million. Chief Financial Officer Doug Jeffries said that Palm was able to deliver several shipments early, just before the end of the quarter. Palm recognizes most of its revenue when phones hit distributors, not when the devices are sold to consumers. After Jeffries revealed the revenue forecast in a conference call, the shares fell 74 cents, or 13 percent, to $4.91 in after-hours trading.

Jeffries said Palm now expects sales in the current quarter to be less than $150 million, partly because carriers now have big stocks of phones to sell off.

This news is from China electronics manufacturer.

Related Products:
  • None
  • No responses yet

    Inquire Now