Palm’s Revenues Drops Like A Stone…. Company Puts One Foot In The Grave

Palm came out with this press release yesterday and the news isn’t good if you’re a Palm fan:

The company announced that it expects to record revenues for Q2 fiscal year 2009 in the range of $190 million to $195 million. The revenue decline vs. the company’s Q1 fiscal year 2009 and Q2 fiscal year 2008 is a result of reduced demand for maturing smartphone and handheld products. The company stated that while it had expected these factors to pressure revenue in its November 2008 and February 2009 quarters, the difficult economic environment has greatly intensified the negative impact on product sales.

It sucks to be them. But they have plans to try and stop the bleeding:

The company is currently implementing several cost-savings initiatives, including reducing its U.S. work force, consolidating its European operations, and shifting responsibility for Asia Pacific sales, marketing and administrative support to its U.S. offices. The company expects that by Q4 fiscal year 2009, these actions and other cost-savings initiatives will reduce quarterly operating expenses by approximately $20 million vs. Q1 fiscal year 2009 levels.

So, despite the fact that nobody is interested in buying Palm products anymore, the smart phone market has a ton of choice that is much better than what Palm is offering at the moment, and their next generation OS is years late, does any of this cost cutting matter?

My opinion? No.

Leave a Reply

%d bloggers like this: