The tectonic shifts in the smartphone market are bringing down the roof on Palm, which is shortfalling at least 30% of expectations.
- John Paczkowski, Time to Start Looking for a Buyer, Palm?
So much for Palm’s (PALM) big recovery. This morning the company lowered its fiscal-year revenue forecast and warned of an ugly 30 percent shortfall in its current quarter. Palm expects third quarter revenue to be between $285 million and $310 million — signifigantly less than the $425.4 million analysts had been expecting. As a result revenue for the fiscal year will be “well below” what the $1.6 billion to $1.8 billion it had projected.
Clearly, concerns about declining sales of the company’s webOS smartphones were well-founded. It seems now that there’s a growing possibility that they may not reach critical mass. Which is obviously worrisome because Palm has essentially bet the farm on them.
There there is no where for Palm to go. Nokia, Android, iPhone, and the newly demoed Windows Mobile 7 are going to carve up Palm’s business. Maybe Nokia could acquire Palm?