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  1.    #1  
    For those who aren't familiar with Jean-Louis Gassée, his story parallels Jon Rubenstein's to a pretty eerie degree. He was forced out of Apple, started Be Inc, created an OS that was, by all accounts, technically superior to almost everything on the market, and watched it all crumble.

    And now he's sharing his thoughts on Palm -- which are a lot more grim than most of us would think.

    There are a lot of money quotes in his piece along with some tidbits that I haven't seen discussed here. Among them are...

    It gets worse. Behind the scenes, Palm engaged in a classical desperation move: stuffing the channel. The expression means force-feeding your distribution network, shipping more inventory than needed. The hope is distributors will work harder, stimulated by price concessions or other marketing incentives. But, if the channels barf, the desperation move turns lethal.
    What very probably happened is this: initially believing his own propaganda, Ruby didn’t want to yield to Verizon’s demands. Palm’s CEO bet a successful launch with Sprint would cause the bigger carrier to come around — only to take a less advantageous deal later and too late. By then, everyone knew about the Pre’s tepid reception at Sprint, taking any leverage away from Palm in discussions with other carriers.
    Unfortunately, the situation turns out to be even worse than suggested by the 552,000 difference between units shipped and sold through. One analyst, Morgan Stanley’s Ehud Geldblum, looked at earlier quarterly numbers and pegs the total unsold inventory at 1.15 million units.
    Under various forms, see the same page 8 again, I’m simplifying a bit without distorting the overall picture, the amount of money the company owes is higher than the sum of its cash plus what others (customers) owe it.
    They took control of Palm, brought in new money, ditched the old management and the old product, the Treo, put in new team and new technology in play. And ended up with today’s situation: no money and a shot brand.
    His conclusion is that the obvious solution for Palm's woes -- acquisition -- might not be that obvious after all, making a good case for why Palm isn't an attractive company to acquire.

    The ironic twist to this is that his own company, Be Inc, was ultimately acquired by Palm in 2001.

    Who will buy Palm? | Monday Note
  2. Ottoa2000's Avatar
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    #2  
    almost sounds more like a disgruntled employee or bitter ex.

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