Palm Sales Plummet 29%: CEO Blames Missed Opportunities

As predicted, Palm is losing ground fast to iPhone and Android handsets like Droid. The handset maker shipped 960,000 smartphones to the stores in the quarter ended Feb. 26 (23% year over increase). However, the number of actual handsets sold dropped by 29% to 408,000.


The company which pioneered the smartphone segment suffered a loss of $22 million. Following the disappointing results, the value of Palm’s shares dropped by nearly 15%. However, Jon Rubinstein – Palm’s CEO, believes that the situation would have been drastically different had Palm gone on sale at Verizon before Motorola Droid. “If we could have launched at Verizon prior to the Droid, I think we would have gotten the attention the Droid got. And since I believe we have a better product, I think we could have even done better”, said Rubinstein.

It is a pity that the original smartphone innovator is struggling to sell a million handsets, while Apple managed to sell in excess of 8 million handsets in the same quarter. The big question is – can Palm reverse their fortunes? The substantial stockpile of Palm handsets already present with various distributors makes a quick recovery unlikely. Only time will tell if Palm can find back their winning ways. But for the sake of consumers, let us hope that they do.

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