With a handful of new Android handsets arriving at market in the coming weeks, including Motorola’s much anticipated Droid, Palm’s prospects for blowout winter holiday sales are dimming. Earlier this week, analysts at Citigroup and CL King voiced their concerns about the company in the wake of another ugly quarter from carrier partner Sprint. Now, Standard & Poor’s is doing so as well.
With Palm’s shares up more than 900 percent since January, they were destined to suffer a correction someday. And now it seems that day has finally come. Shares in the handset maker fell some 23 percent last week amid concerns about increased competition from Google’s Android operating system, which is being rolled out on a number of devices at a variety of carriers, including Palm partner Sprint.
The Palm Pre may have been the most successful handset rollout in Sprint’s history, but it hasn’t stopped the carrier from hemorrhaging customers in the months following its launch.
When Apple said it does not support iTunes integration with third-party digital media players, it meant it. With iTunes 9.0.2, it has once again disabled the Palm Pre’s ability to synch with the media software.
Verizon uncrated its latest iPhone challenger Wednesday morning, introducing the new $199 Motorola Droid, and it already has analysts buzzing about the life it may breathe back into Motorola, whose share of the phone market dropped by nearly half in the second quarter from 10 percent a year earlier.
The Pixi, Palm’s second webOS-powered smart phone, finally has a price and a U.S. street date. This morning, Sprint said the device will arrive at market Nov. 15. Price: $99.99 with a two-year contract and after $150 in rebates. Not the most aggressive of prices considering that Amazon is currently offering the Pre, Pixi’s elder sibling, for $99 with two-year contract as well.
Some 740 billion text messages were sent in the first half of 2009 in the U.S. This according to the CTIA’s semiannual wireless industry survey, which helpfully breaks down that astonishing figure to an even more astonishing 4.1 billion texts per day. That’s about double the number sent during the same period last year.
Oh, it’s really on now. This morning Palm announced webOS 1.2.1, another point release to its new webOS platform that restores media synchronization with the latest version of Apple’s iTunes (9.0.1). Moreover, the company has gone the extra step of extending that synchronization feature to photos.
No wonder Microsoft CEO Steve Ballmer is so dismayed by the company’s Windows Mobile division: Most Windows Mobile users aren’t even aware their phones run it. In fact, according to the CFI Group, WinMo has such poor brand recognition that it was forced to group it in the “Other” category in its Smartphone Satisfaction Survey.
Discussing Palm’s first-quarter results earlier this month, the company’s leadership claimed that “the vast majority of new sales” for the quarter were generated by the Pre. Palm sold some 823,000 handsets during that period with sell-through of 810,000 units, so that’s an impressive feat. But only if the sales we’re talking about here were made to on-the-street consumers. And, according to Town Hall research analyst David Eller, it’s not entirely clear that they were.
Palm has begun rolling out webOS 1.2.0, a minor point release to its new flagship operating system, which boasts some 70 improvements. Notably absent from this update: The reenabling of iTunes synchronization, which Apple spannered when it released iTunes 9.0 earlier this month.
Analysts who follow Palm are already rolling their eyes over TheStreet.com’s claim that Verizon has balked at adding the company’s new Pre handset to its lineup. In a research note this morning, Deutsche Bank’s Jonathan Goldberg dismissed it as “off base.”
Well, now we know why Verizon Wireless CEO Lowell McAdam said he expects to have “devices like the Pre” on his network by next year: The carrier doesn’t plan to offer the Pre at all–according to unnamed sources cited by TheStreet.com, anyway.
What Palm lacks in market share, it more than makes up for in mindshare. In fact, according to a new study from research outfit Interpret, Palm’s new Pre handset is second only to the iPhone in that metric, despite its disadvantages in the marketplace.
Though its shares are up more than 900 percent since January, Palm remains a “show me” story. So says Susquehanna Financial analyst Jeffrey Fidicaro, who seems to think the Street is putting a bit too much faith in the company’s next-generation platform, webOS, and the devices that run on it.
John Paczkowski has been poking fun at the tech industry and the personalities that drive it since 1997. From 1999 to 2007, he wrote the award-winning tech news Web log Good Morning Silicon Valley for the San Jose Mercury News, Silicon Valley's daily newspaper.
Here is a statement of my ethics and coverage policies. It is more than most of you want to know, but, in the age of suspicion of the media, I am laying it all out.
Best video mashup ever.
A Facebook Memorial
Wow.
Worth it for the Rickrolling photo alone.
Excellent.
Flughumor!
… you vacuous, toffee-nosed, malodorous perverts
Stephen Fry and zoologist Mark Carwardine meet the kakapo — a fat, flightless and very randy rare parrot.
Spectacular in the bellowing Russian sailor sense of the word …
“If you spell something wrong on your insurance claim, do you really deserve surgery? I don’t think so …”
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