Mobile // Mobile Devices
News
6/26/2008
08:00 PM
Connect Directly
RSS
E-Mail
50%
50%

Palm Awaits Future Products As Revenues Decline

The company continues to struggle with a reported a loss of $43.4 million, despite the success of the Centro.

Continuing its downward trend, Palm announced a loss in its fiscal fourth quarter as Research In Motion and Apple continue to grab a larger share of the smartphone market.

For the three months ending May 31, Palm reported a loss of $43.4 million, or 40 cents per share. Last year, the company had a fourth-quarter profit of $15.4 million, or 15 cents a share. Revenue also dwindled, falling to $296.2 million from $401.3 million for the same period last year.

The company said revenue fell because of slowing sales of older Treo phones, and this is the fourth consecutive quarterly loss for Palm. The company lost $111 million for all of fiscal year 2008, compared with a profit of $56.4 million in fiscal 2007.

A bright spot for Palm has been the Centro, an entry-level device that has appealed to first-time smartphone buyers. The company has sold more than 1 million Centro handsets since its debut last fall.

It was a major factor in the company's selling a record 968,000 total phone units in the quarter. But the Centro normally costs $99 with a carrier contract, leading to a less-lucrative margin than Palm's other devices.

"The Centro is a smash success. We have a competitive product pipeline and are developing a world-class software platform. I expect together these efforts will develop positive results in the coming years," Palm CEO Ed Colligan said during a conference call to investors.

The company is expecting to have new Windows Mobile-based Treos on the market next quarter, but RIM should have its latest BlackBerry devices out by then. Additionally, Apple's iPhone 3G will be a significant draw for potential Centro users with an attractive $199 price point.

Comment  | 
Print  | 
More Insights
Building A Mobile Business Mindset
Building A Mobile Business Mindset
Among 688 respondents, 46% have deployed mobile apps, with an additional 24% planning to in the next year. Soon all apps will look like mobile apps – and it's past time for those with no plans to get cracking.
Register for InformationWeek Newsletters
White Papers
Current Issue
InformationWeek - July 21, 2014
Our new survey shows fed agencies focusing more on security, as they should, but they're still behind the times with cloud and overall innovation.
Flash Poll
Video
Slideshows
Twitter Feed
InformationWeek Radio
Archived InformationWeek Radio
In this special, sponsored radio episode we’ll look at some terms around converged infrastructures and talk about how they’ve been applied in the past. Then we’ll turn to the present to see what’s changing.
Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.