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Palm Pre-tty Bad; u2 Shareholder Great!!
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Yesterday, former Apple executive and now Palm CEO led a disappointing year-end conference call, complete with jokes and stay tuned, on the recent earnings performance of Palm.
And no wonder, the Palm earnings report and subsequent conference call was disappointing. Only one caller, from TownHall research who later got thrown off of the call from asking questions about Sprint, suggested that the company had a good quarter or had performed as expected.
While Apple is quick to report iPhone sale surges, Palm hides the numbers. And with good reason, when was the last time that any reader has seen a Palm Pre in somebody's palm? Without clear direction, analysts have estimated that Palm sold an estimated 500,000 Pre units, well short of the Apple iPhone 3GS.
Adding insult to injury, Palm also announced that 16 million more shares were going to be floated, diluting the stock further but also providing more money to burn over the coming year. The only good news? Elevation Partners, co-founded by exhilarating song writer and superstar Bono!, will be buying some of the shares. A u2 CD is available for the price of Palm stock!
In this demanding recessionary environment, product value is king. Pre, the last gasp for Palm, came up short. Four software upgrades later, consumers are still wanting for features. Why? Palm failed to innovate. Palm kept the same Palm OS alive for more than a decade.
While some blame technological behemoths like Microsoft for creating buggy software and Dell for devolving from its core offering of customization, Palm sat still, pumping out Treos and absorbing Handspring (remember them?).
Meanwhile, Apple’s iPhone 3GS, perhaps the greatest cell phone ever made, continues to roll along. New apps are rolling out and Apple stores remain busy.
How long can Palm sustain against healthy competitors like Apple?
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