Palm needs more than Pixies to save it

How the mighty have fallen. Once a pioneering leader in handheld computing, the smartphone market has not been kind to Palm Inc. Palm’s latest quarterly loss means the company is heading for its third year of losses in a row. As ZDNet’s editor in Chief Larry Dignan points out, Palm now finds itself in a viscous cycle. ” Sales in the third quarter were weak. So weak that Palm’s sell through in the third quarter was 408,000 units vs. a sell-in of 960,000 units. That means Palm seriously overestimated demand for its devices….Now Palm will have to discount, take charges for inventory and suffer a gross margin hit to lower the inventory of Pre and Pixi devices.” (ZDNet 19/03/2010) So just how bad are things […]