Results 1 to 7 of 7
  1. fwinst's Avatar
    Posts
    715 Posts
    Global Posts
    844 Global Posts
       #1  
    I found this article on MSNBC. It seems to me that if Palm is betting the farm on the new Treo line to save them, it better be a mind blowing device. If the new 800w hits the market with a resounding THUD, I believe it might be the last new Treo we see. At any rate, I just wanted to share.


    Palm shares sink on loss report
    Posted Jun 27 2008, 01:06 PM by Kim Peterson
    Filed under: Apple, Research in Motion, Palm, wireless

    Palm shares are sinking like a stone today after the company reported disappointing losses and sales in its fourth quarter. Analysts had expected the company to do better, and the report leaves questions about Palm's survivability against competition like Apple and Research in Motion. Palm shares have been down about 10% all morning, and have dropped 64% in the last year.

    Wait, isn't Palm's Centro a big hit? Yes, the company has sold more than 1 million of them since launch. But that success isn't helping Palm's bottom line because the $99 Centro has lower margins than other phones like the Treo. Think of the Centro as Palm's long-term investment in entry-level smartphone users (some 70% of Centro buyers have never owned a smartphone before).


    So Palm's taking a loss on the Centro in the hopes that it will gain down the road by upselling those users higher-priced devices like the new Treo line. Palm is trying to get new Treos out next quarter -- just in time to compete against the new 3G iPhone and the upcoming BlackBerry Bold.


    But how well can Palm compete against Apple and Research in Motion? A big part of this battle will be marketing, and I wonder if Palm has the chops for it. RIM said this week it's going to increase its sales and marketing expenses by as much as 30% in the current quarter. And Apple's marketing team must be using black magic to be so effective. Palm can't be drowned out by the competition.


    Centro sales helped Palm up its share of the U.S. smartphone market to 13.4%. Apple is at 19.2%, and RIM dominates with 44.5%. Palm's biggest challenge will be holding on to its market share this year. To do that it needs to score perfect marks on product quality, marketing prowess and sales strategy in the retail channel.
  2. #2  
    The 800w should have been released 3 years ago if palm was to stave off RIMM'S dominance.

    Now that palm has finally gotten around to offering a device with features which have been clamored for for what seems like half a decade or more, their timing could not possibly have been worse!

    The country is in a recession, which is deepening. Heck, the GLOBAL economy is in bad shape too! Palm as a company is already being pummeled into the fetal position financially. Its stock price teeters on the brink at $5.29 / share and they have precious little capital to advertise their new treo. The average individual isnt going to drop $249 or more on a smartphone quite as readily as they would have in the past now that the costs of energy, food and basic expenses are increasing. The economy is stagnating or worse. So what kind of outlook do you think that gives the 800w? Damn, palm. Just.... damn.

    This is a decent device, but unfortunately it most likely won't sell to the degree that palm needs it to in order to turn a better profit, or convince analysts that they are in any better position against competitors.

    Due to the loss sustained with the centro, palm doesn't have the capital to advertise in a manner competitive with apple and RIMM.

    Its just amazing. Palm couldn't possibly have made it any harder on themselves. They went from pioneers in the field to the keystone cops of the smartphone world. It makes your blood pressure rise just to look back briefly on a few of their numerous boneheaded business moves in the past.
  3. #3  
    "So Palm's taking a loss on the Centro in the hopes that it will gain down the road by upselling those users higher-priced devices like the new Treo line."

    Except that you can't upsell people to devices that you don't support. They're ignoring the Treo users in favor of the Centro users... why would anyone pay MORE for a LESS supported device? As it is right now, the Centro will do more and has more functionality than it's twice-as-expensive big brothers.
  4. #4  
    I think the biggest mistake Palm made was having the Centro be POS and then dropping it entirely for Windows on all new Treos. Get all those new users (700,000 so far) according to the numbers above, and then leave them out in the cold when it comes to upgrading when the time comes. The Centro should've been Windows. I'll bet most of us here that have Centros or 755s, and came here from smartphones, had another POS phone before.
    Kyocera 6035 > Kyocera 7135 > Treo 600 > Treo 650. All Verizon. Sprint Treo 755p, HTC Mogul & Centro
    Unlocked Treo 680 for trips outside Sprint's areas
  5. #5  
    I don't think Palm's taking a loss on the Centro. That would be suicide for them to do that, because their stock prices would drop to pennies and their stock holders would force executives to leave.

    They may not be making much off them, but I think they priced it at a price point that sold the maximum amount and netted the maximum profit to get some quick cash into their accounts.
  6. #6  
    Quote Originally Posted by RickMG View Post
    I think the biggest mistake Palm made was having the Centro be POS and then dropping it entirely for Windows on all new Treos. Get all those new users (700,000 so far) according to the numbers above, and then leave them out in the cold when it comes to upgrading when the time comes. The Centro should've been Windows. I'll bet most of us here that have Centros or 755s, and came here from smartphones, had another POS phone before.
    A Nova upgrade for the Centro would be nice. I wonder if they'd do that.
    HP has officially ruined it's own platform and kicked webOS loyalists and early TouchPad adopters to the curb. You think after you drop it like a hot potato and mention it made no money and is costing you money, anyone else wants it??? Way to go HP!!

    And some people are fools to keep believing their hype. HP has shown they will throw webOS under the bus and people are still having faith in them??? News flash: if it's own company won't stand behind it, it's finished!
  7. #7  
    Quote Originally Posted by RickMG View Post
    I think the biggest mistake Palm made was having the Centro be POS and then dropping it entirely for Windows on all new Treos. Get all those new users (700,000 so far) according to the numbers above, and then leave them out in the cold when it comes to upgrading when the time comes. The Centro should've been Windows. I'll bet most of us here that have Centros or 755s, and came here from smartphones, had another POS phone before.
    I think the reason Palm chose POS for the Centro was to save money. If it used anything else, it would have to license the OS. Using POS, it got it for free. It was also something different. There's plenty of inexpensive WM phones out there, like the Q. This was something easy, something different, targeted towards the younger generation.

Posting Permissions