PDA pioneer Palm on the verge of collapse
By Wilson • Mar 23rd, 2010 • Category: PDA News
- Photo: Palm
Palm, who came crashing onto the scene a little under two decades ago with their Palm PDA in high demand, is on the verge of collapse – in its current incarnation, at least. With product development stalling, lukewarm sales and widening losses, moderate analysts are calling for a rethink while others’ outlook is even less rosy.
What happened?
Palm, who tasted their first major success on the heels of their PDA the Palm Pilot, grew so fast during the dotcom bubbly that 3Com, their parent company, opted to spin them out as an independent company.
- Photo: Palm
While Palm Pilot and Palm PDA sales were strong, the company thrived. But soon, as smartphones began introducing the same features as those found in the PDAs, Palm’s grip on the industry they defined began to slip. In response, Palm began building its Palm-branded range of smartphones, which had moderate market success initially, before beginning to wane rapidly.
Now, in a world where the idea of the stand-alone PDA is absurd, and smartphones developed by Apple and others powered by Google Android, Palm’s lineup has failed to impress, leading to a rapid decline in financial outlook. The 02-carried Palm Pre and the Palm Pixie alike have not had the financial success Palm was banking they would.
Palm, you are worth $0
As a result of this, Palm’s reported third quarter losses of $22 million (£14.65 million) led to the company’s shares nose-diving over 25%. Many analysts changed their Palm share rating to $0.
Is everybody just overanxious?
- Photo: Palm
During the earnings call Jon Rubinstein, Palm’s CEO, said the company is preparing for launches with a few carriers, which should hopefully stem the tide, narrow losses, and improve the organisation’s outlook.
What is clear is the day of the Palm PDA and the Palm Pilot are long over, and unless the company can adapt to the times, Palm will continue to be a shadow of its former self.
Tags for this article: palm, palm pre, PDA, smartphone
