Palm revenues plummet as Treo sales fall

02 Dec 2008 10:39

Second-quarter revenue will be far below analyst expectations as Treo sales continue to dwindle without Palm's next-generation OS

Revenue for Palm's second fiscal quarter, which ended last week, will be just $190m (£128m) to $195m, the company announced on Monday, ahead of its 18 December conference call.

Wall Street analysts had been expecting Palm to record $331m in revenue. The 41 percent gap between the Palm and analyst figures has been caused by "reduced demand for maturing smartphone and handheld products", Palm said in a press release.

Last week, Palm revealed plans to cut jobs and refocus its business as it copes with a poor economy and strong competition from the likes of Apple and RIM.

Palm's Treos [pictured] were once very popular, but look outdated in comparison to the iPhone and new BlackBerry models, such as Storm and Bold. If it wasn't for the Palm Centro — which doesn't break any ground on the software front but costs an attractive $99 — Palm might no longer be afloat.

If Palm can get products using its Nova operating system — scheduled to arrive in the first half of 2009 — out on the market before Treo sales fall too much further, the company may be able to turn its fortunes around.

Story URL: http://news.zdnet.co.uk/hardware/0,1000000091,39568426,00.htm