As many smartphone manufacturers and platforms gain increasing profit this year, Palm is unfortunately gaining lower sales over their new phone products Pre Plus and Pixi Plus. It is reported that Palm’s selling record has fallen and it keeps continuing to slower down even after the Pre Plus and Pixi Plus were released. Therefore, Palm has officially announced to cut its revenue forecast for both fiscal third quarter for the entire year on last February 25. Even though on the past 12 months Palm was reached high selling rate, this year Palm handsets selling rate is apparently out of its expectation.
Palm executives tended to explain reluctantly about the decreasing selling rate and they even did not describe the number of Pre Plus and Pixi Plus handsets have been sold. At the beginning, Palm was expecting the same success after announcing the partnership with Verizon Wireless but right now it seems doesn’t work well.
Even though those two phones are using Palm’s webOS, it didn’t prove the selling rate will increase this year. However, the company admitted that it is actually taking longer than it has anticipated to drive broad consumers adoption of Palm products. But the company also admitted that even though the sales are going slower, the partnership remains loyal.
Compare to the other phone manufacturers, Palm is left far behind. In earlier 2009 Palm had showed the falling signals. And during the global recession, even though Palm’s phone market slows down, Google’s Android and Apple’s iPhone help the market to stable in the fourth quarter of 2009. Moreover, the competition factors can be the cause of Palm’s selling rate to drop. Certainly, Palm didn’t give the report how many handsets it had shipped during the time. Tracing back to 2009, BlackBerry is reported shipped 34 million handsets, whereas webOS shipped only 1.1 million, in addition, the Google’s Android selling rate reached great increase of 3.4 percents.
Palm had came with many plans last year, including the expectation that Pre Plus and Pixi Plus would help it to get better selling rate with the webOS injected to both smartphones. However, now it seems like Google and Apple have attracted more number of many phone consumers attention over the globe. The consequence of falling selling rate drives the lower company stock trade to fall down from $18 a share last year to $6.53 by the end of this month. Indeed, Palm is reported to announce the latest quarterly results next March 18. (fallen)