Over the past few days it has become pretty clear that the Palm company is doomed.
Palm, the maker of such phones as the Palm Pre and Palm Pixi, has had some analysts change its stock status to “Sell”, while at least two others have changed the value to $0. This follows a 19% plummet in share prices yesterday, and a less than stellar earnings call on Thursday.
The company has been around for years, and for a long time was a staple of the business community, but its adherence to sticking with the original PalmOS was part of its downfall. Once it finally came out with a new operating system, the webOS, they slapped it in to two very odd phones, and went exclusive with Sprint. They also made it overly difficult for application developers to build for the new system, and while iPhone app developers could easily port their work over to Google’s Android OS, the same couldn’t be done with webOS, meaning entirely new development time.
In short, everything Palm could do wrong, it did.
Seeing as the current CEO, Jon Rubinstein, claims he has never even used an iPhone, something you would expect a competitor to have done at least once, you have to wonder about the entire thought process of the company. You never once check out your main competition’s flagship product. Seriously?
During the earnings call it was revealed that in the third-quarter of Palm’s financial year, 57% of their phone stock was left sitting on carrier’s shelves, and before any new shipments can happen, they need to help them lower those inventory levels.
In short, if you’re in the market for a new cell phone, I wouldn’t be looking at Palm handsets right now, because there is no guarantee they will be around to give service in a few months time unless something drastic happens.