Recent analyst downgrades of Palm stock have led to rumors claiming that Elevation partners would plan to sell its stock in the near future.
This is untrue according to an Elevation Partners spokesperson, who claimed the following:
“Elevation Partners is very pleased with the progress Ed Colligan, Jon Rubinstein and the entire Palm team are making. The Company’s product pipeline, including a next generation operating system due out soon and a new device targeted for the first half of 2009, excite us enormously. Elevation supports Palm in taking the difficult but necessary steps required to migrate from legacy products. We have a very long-term investment horizon and have no plans to exit our investment in Palm.”
While their enthusiasm is honored, I think that their definition of legacy product is not exactly right. Bigger devices (think Treo 680) and handhelds (think ipaq 210) still sell pretty well (and will continue doing so for the infinite/near future). Exiting these markets IMHO does little good…
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