People who have invested into Palm’s stock before the Pre announcement have netted a nice bit of extra cash over the last months – unfortunately, it looks like its time to take the revenue to the bank.
Barron’s quotes two analysts as follows:
Kumar says that despite being positioned as a flagship product at Sprint (S), Palm shipped under 300,000 units in May and June. He says the company ramped up production aggressively in July when shipments exceeded build levels in the previous two months, but that the “momentum appears to have already peaked.” And here’s the punch line: Kumar contends that “due to weakening demand,” Pre production levels for the remainder of the year have been chopped by 500,000 units.
Grozovsky writes in a research note that his checks find Pre sales in July were down to about 100,000 units, from 200,000 in June – and that August is tracking to be even lower than July.
Careful observers of TamsPalm will recall that our recent analysis of Pre sales led us to a generous estimate of 300kpcs sold by end of July – the numbers generally sound reasonable.
Palm most definitely has not passed the 1 million mark so far, as its marketing team would have gone bonkers the moment this happens. 500k (which is also an important milestone) is also unlikely – given the increasingly negative market sentiment, the company would have grabbed each and every straw in reach…
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