Palm sales 'lower than expected,' revenues to miss targets
byNilay Patel||February 25th 2010 at 9:50amFebruary 25th 2010 9:50 am
Ruh-roh. Palm just confirmed what we heard from analysts yesterday: sales aren't going so well. The company's updated its third quarter financial guidance to say that consumer adoption of its products is "taking longer than expected," leading to lowered order volumes from carriers and deferral of some orders to "future periods." That certainly puts that "Chinese New Year" Pre / Pixi work stoppage in a slightly different context, doesn't it? Looking at the new numbers, Palm says it expects non-GAAP Q3 revenue to be about $300m, or about the same it pulled in Q2before the Pre Plus and Pixi Plus launched on Verizon. That's not a good sign, but we'll see if that kicks someone at Verizon or Palm into realizing they might need a new, less-stupid ad campaign focused on capabilities, not stereotypes.
*Verizon has acquired AOL, Engadget's parent company. However, Engadget maintains full editorial control, and Verizon will have to pry it from our cold, dead hands.