Originally Posted by s219:
I will say this, if they were having trouble keeping up with demand, we surely would have heard about it during the conference call. While it's not a 100% bragging point (since it may indicate they didn't plan properly or setup sufficient production), companies almost always trumpet when they are having trouble keeping up with demand.
I think if you look at the lack of specific numbers and milestone press releases, the price cuts, and the fact that Palm acknowledged that they had demand from the Sprint and Bell launches but lower sales in between (which forms the basis of their lowered guidance for the current quarter), it suggests the device wasn't selling as well as they had hoped. I think you'd have to be a real optimist to see it the other way around.
SPRINT CEO said during last earnings call that the inventories were low and demand was high.
Regarding PALM's lower guidance , they are expecting Pixie to sell well while Pre sales become stagnated. Pixie is cheaper phone than Pre, thus the lower revenue guidance. Also PALM will be spending money ( the little they have left) on marketing for the rest of the year.
Come 2010 , things will be better for PALM.
Verizon will start selling the Pre. Based on SPRINT sales ( 500K -600K plus ) PALM might sale a million Pres on Verizon.
I am not sure why I wouldn't be an optimist.