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Palm may have sold 670,000 phones in fall

updated 10:00 am EST, Fri December 11, 2009

Analyst sees Palm better than expected

Palm may have fared better than expected in its crucial fall quarter, according to an investment note from Kaufman Brothers. Senior analyst Shaw Wu points to checks in the industry that suggest the company should have shipped about 670,000 Pre and Pixi phones between September and November. Although down from the summer peak of 823,000 phones, the tally is higher than expected and should skew towards the more lucrative Pre.

Average selling prices are likely to have dropped down to $406 before carrier discounts due to the Pixi's lower price, but Wu still predicts that soften its previously anticipated losses: it should earn $276 million in pure revenue and see its net loss soften from a feared 32 cents per share to 29 cents.

The researcher justifies his view of the company by arguing that many investors are "overly negative" about Palm and ignore some of the advantages of its phones, such as multi-touch support and a top-to-bottom integration of the OS and hardware. Even if not always commercially successful, it could be an "attractive acquisition" for a company hoping to get an edge in smartphones, Wu says.

How Palm will fare in 2010 is considered the primary concern as it's not known which carriers will adopt its phones once Sprint's exclusivity ends. The most likely candidate for the Pre is Verizon, but AT&T and further international carriers could also help Palm's finances as long as the devices are released relatively quickly.

by MacNN Staff



  1. jragosta

    Joined: Dec 1969



    Gee. It took Apple almost a full weekend to sell that many phones when they launched the 3GS.

    You glossed over the fact that their phone sales dropped by almost 20% from the summer quarter to the fall quarter. So much for the Pre being an iPhone killer.

    Bye-bye, Palm.

  1. CMT1978

    Joined: Dec 1969


    There is hope

    RE: jragosta's comment

    I don't think anyone with a realistic view of the market expected Palm's Pre to outsell or match the sales of the iPhone. As a much larger company (then Palm) with a very very large hold of the mind-share of the public as a brand, Apple has a product that to many is like Kleenex in that it's the product many automatically think of when the word "smartphone" is mentioned. That said, Palm's webOS is a strong contender and has unique advantages over any other smartphone OS on the market that give it a fighting chance (real multitasking as an example). Palm has a fighting chance now that its webOS phones are making it onto multiple carriers in multiple countries & markets. As long as their marketing gets better and their app store gains traction with developers, I believe they will be around and relatively strong for the foreseeable future.

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