Palm CEO Circa 2006: Apple Win in the Smartphone Sector? Never Gonna Happen
by John Paczkowski
Posted on December 2, 2008 at 5:49 AM PT
Looks like Palm (PALM) will end 2008 much the way it ended 2007, with layoffs.
After market close Monday, the downtrodden handset maker warned that sales for its fiscal second quarter will come in well below expectations. “We are seeing unprecedented dynamics in the global markets as economic uncertainty hampers demand for consumer products,” Palm CEO Ed Colligan said in a statement. “In order to ensure Palm’s long-term success during these uncertain times, we’re taking several steps to significantly reduce our cost structure.” First among those steps: layoffs–just in time for the holidays.
Palm blamed its dire straits on “reduced demand for maturing smartphone and handheld products,” which is apparently a handy euphemism for “reduced demand for Palm products.” Because demand for RIM’s (RIMM) Blackberry and Apple’s iPhone seems to be holding up pretty well during this period of economic uncertainty. Apple (AAPL) is, after all, now the world’s third-largest mobile phone supplier in terms of revenue.
Which reminds me of a funny story. Asked in 2006 about rumors that Apple was developing a smartphone, Palm’s Colligan scoffed at the idea. “We’ve learned and struggled for a few years here figuring out how to make a decent phone,” he said. “PC guys are not going to just figure this out. They’re not going to just walk in.”
Comments
I love hearing about the fools that predict the future when it comes to Apple. Palm is a failing company and thay have Mr. Colligan to thank. He has no vision if he did he would not have said what he did back then.
Posted by Quincy Davis at December 2nd, 2008 at 7:55 amI’m an apple lover, but I don’t “love hearing” that Palm is failing. They had a good OS, but, in my opinion, got lost when Windows Mobile seemed to take off. I remember really enjoying my Palm M125 and being excited by the Tungsten. But then phones and PDAs converged and, where the heck was Palm? I find it sad for the people being fired. I’ll give you one thing, Quincy, it’s the result of poor leadership. CEO’s never fire themselves to save a company a ton of money, though, do they?
Posted by Frank Field at December 2nd, 2008 at 8:58 amAs a LONG-time Palm user, it seems to me that Palm neither innovated boldly, in the manner that Apple did (and does), nor did they devote themselves to and fiercely hold on to their customer base, the way BlackBerry has.
My experience with Palm has been that they are, at best, utterly oblivious to their customers, and their product offerings have been relegated to, at best, me-too status.
They had a lead in both product and market position, and simply squandered both.
Posted by Michael Shults at December 2nd, 2008 at 9:18 amI bought (and still have) the very first Palm Pilot. Earlier this year, with great trepidation, I gave up my Treo with Palm OS for a BlackBerry Curve.
I haven’t looked back. Not only do I not miss the Palm OS and using a stylus, I wondered why I stuck by Palm for so long.
Fare thee well, Palm. You did good, then you got passed.
Posted by Bill Baker at December 2nd, 2008 at 10:21 amThat’s the trouble with the future. It’s hard to predict. Especially in advance.
Posted by Neil Anderson at December 2nd, 2008 at 8:53 pm