Feeds

Palm sales fell 20% in April admits CFO

And m505 PDA will ship in volume even later than expected

  • alert
  • submit to reddit

Security and trust: The backbone of doing business over the internet

Anyone in any doubt that Palm bungled its most recent product transition should listen to what the company has just said about its April sales.

Worse, Palm's latest high-end PDAs, the m500 and m505 may not ship as soon as the company has previously claimed. Both machines will revive its fortunes, the company hopes, as it struggles to compete with Handspring's PalmOS machines and Compaq's Windows CE-based iPaq.

According to Palm CFO Judy Bruner, speaking at a J P Morgan technology conference, the company's sales last month were down by 20 per cent on its March figures, based on numbers from US retail market watcher PC Data.

Of Palm's experience of the current PDA market, she said: "It's been fairly weak and getting a bit weaker from February to April."

We're not entirely surprised. In a bid to ensure it didn't appear to be losing its lead, Palm announced the sleek, silvery m500 and m505 at CeBit in March. Palm fans were impressed, but not with the fact they were going to have to wait until late April/early May to buy one.

Sales of the then top-end Palm PDA, the Vx, slumped, and Palm's plan to clear its inventory of the machine - built up late last year on the anticipation of strong sales through Q1 - by cutting prices now appears not to have helped matters.

Nor did Palm CEO Carl Yankowski's comment to Wall Street analysts last month that while the two new PDAs would ship on time, solid volume shipments would not take place for a "few weeks" later than planned.

Bruner confirmed yesterday that the two machines have begun shipping - the m500 is shipping in greater numbers than the m505 - but (according to CNET's report of her commentary) volume shipments of the colour m505 will not happen until the end of this quarter or early next.

Now, if she's referring to Palm's fiscal quarter, that means the m505 may not appear until early June. But if it's calendar quarters that she's on about, the PDA may not arrive in volume until early July. So, Judy - June or July?

We suspect the former. Or we hope so for Palm's sake, since the m505 is so central to its attempt to compete with iPaq. Compaq has problems of its own, primarily in that it can't make enough iPaqs to meet demand, though we continue to hear dire reports of reliability issues. Taiwanese computer maker High Tech Computer last month opened a new factory dedicated to punching out iPaqs. ®

Related Stories

Palm cuts prices to clear unsold stock
Palm m50x line to be late for PDA price war
Palm to axe 250 jobs as it dips into the red
PDA plant to end Compaq iPaq supply woes

New hybrid storage solutions

More from The Register

next story
Hey, Scots. Microsoft's Bing thinks you'll vote NO to independence
World's top Google-finding website calls it for the UK
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Apple CEO Tim Cook: TV is TERRIBLE and stuck in the 1970s
The iKing thinks telly is far too fiddly and ugly – basically, iTunes
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
OECD lashes out at tax avoiding globocorps' location-flipping antics
You hear that, Amazon, Google, Microsoft et al?
Show us your Five-Eyes SECRETS says Privacy International
Refusal to disclose GCHQ canteen menus and prices triggers Euro Human Rights Court action
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Security and trust: The backbone of doing business over the internet
Explores the current state of website security and the contributions Symantec is making to help organizations protect critical data and build trust with customers.