Palm Pre, Pixi Not Paying Off for the Firm
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Palm reversed declining interest in the company at the 2009 CES with an impressive new phone it called the Pre. More than a year later, and any momentum it had is grinding to a halt. What happened? Find out at Enterprise Mobile Today.
Despite being well-reviewed and reviving excitement in the company, the Palm Pre and Palm Pixi are just not selling as expected -- a tough break for the pioneering device maker, which has been counting on the phones to reinvigorate its business.
Palm (NASDAQ: PALM) CEO Jon Rubenstein issued a memo to staff one day before a warning the Street that Palm's revenues for the current quarter would come in at least $100 million lower than analyst expectations of $424.7 million, according to Thomson Reuters.
Rubenstein also said full-year revenues would be below its previously forecasted range of $1.6 billion to $1.8 billion, "due to slower-than-expected customer adoption of our products, which in turn has prompted our U.S. carrier partners to put additional orders on hold for the time being."
"I realize this news is difficult to swallow. We made this announcement today to prevent a surprise for Wall Street when we announce quarterly earnings in March. In the meantime, the entire executive team has been working extremely hard to improve product performance, and have implemented a number of initiatives to increase awareness and drive sales," Rubenstein wrote in his memo to staff.