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Palm Eos put on ice?

updated 07:45 am EDT, Fri June 12, 2009

Palm Eos on ice?

Palm's budget Eos smartphone is rumored today to be on hold due to worries over Pre sales. The Centro replacement, nicknamed "Pixie," is said by contacts in Asia to still be under development but that its actual launch is frozen until Palm has "better visibility" of how well the Pre and other existing phones are selling. Leaks have suggested the Eos would ship in the fall and thus have the delay coming a few months before launch.

While TechCrunch speculates that a poor reaction to the Pre is the primary factor in the supposed freeze, both its sources and initial estimates hint that shortages are the most likely factors in Palm's sales numbers to date. Chinese contractor Foxconn was reportedly asked to make 500,000 Pres for launch but was only able to supply 150,000 due to a "complicated mechanical design" that cut back on what it could ship and which may have delayed the release.

The Eos is regarded as important for Palm as it should be the first to sell to North American carriers besides Bell and Sprint and will compete against a newer wave of inexpensive smartphones, including the price-slashed $99 iPhone 3G.




by MacNN Staff

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Comments

  1. Jonathan-Tanya

    Joined: Dec 1969

    0

    absurd

    I'm not sure why wild speculation makes it into the news portion of the website, instead of being simply in the comment section.

    But anyway, I doubt Palm has any plans to delay the EOS based on Pre sales.
    If anything they would want to hurry the EOS based on Pre sales.

    There is zero chance, that Palm is going to go hey, lets slow down this webOS adoption, lets fall back on Palm OS 5.4 Garnett.

    HA! that would be classic Palm, but no...forget about it, there are no solid sales to fall back on, they have no choice but to go forward.

    Maybe if PRE sales were so MASSIVELY GOOD, then they could consider delaying the lower cost EOS, but otherwise, this is their best plan to compete.

    Parts shortages/foxconn's demands, etc....could delay the phone.

  1. peter02l

    Joined: Dec 1969

    0

    not that absurd

    There is more than a zero chance, Jonathan.

    1. they may not have or want to risk the funds to order the Eos phones.

    2. they may not want to be stuck with any inventory.

    3. they may not have or want to spend any money on marketing the new phone.

    I am sure being a former Apple employee, Rubenstien would prefer to focus scarce resources on the Pre than to spread the company too thin.

  1. peter02l

    Joined: Dec 1969

    -1

    furthermore

    Palm lost $690 million (EBITDA $190 million) last quarter. They have a horrible cash flow. They have $220 million in cash and almost twice as much in debt. The 150,000 units probably cost them about 30 million to order. 500,000 would have cost them $100 million. Foxconn, I am sure does not want to be stuck not being able to collect in the event of bankruptcy.

  1. ricardogf

    Joined: Dec 1969

    -2

    Buy

    Apple should just buy them and get Jon back; and put the Pre in the trash where it belongs.

  1. bigmig

    Joined: Dec 1969

    -2

    No shortages

    If Pre's sales numbers are disappointing, it's definitely NOT because of shortages. All six Best Buys in my area (SF/Oakland) report available stocks of the Pre, and Best Buy was supposed to have the lowest stocks and sell out the quickest (since it offers $100 off instantly rather than having to futz around with a $100 rebate that you may or may not ever receive).

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