Consequently, the company has been losing market share. Palm now trails suppliers, such as Apple, Nokia, and Research in Motion in sales. The market changes have hit Palmï¿¼s bottom line: the company has posted six successive quarterly losses. As a result, questions have been raised about vendorï¿¼s long term viability.
Elevation Partners has been trying to help Palm navigate the turbulent smartphone waters. The private equity firm invested $325 million in Palm in October 2007 and has now pledged another $100 million in capital for the cell phone supplier. While few details have emerged about the Nova operating system, Palm is expected to start shipping the device in the first half of 2009. Flush with cash, Palm may try to create a buzz around the device and divert attention away from recent hits: Appleï¿¼s iPhone and Googleï¿¼s Android system.
Since Palm has been in business since the inception of the smartphone market, a number of small and medium businesses rely on its system. With competition intensifying, the companyï¿¼s future has been in question. The cash infusion should help the vendor for the short term, but its future revolves around the success or failure of its Nova system, something that should become evident in the new year.