Palm’s (PALM) fiscal second quarter was so bad they had to tell us about it in advance: The once-hot smartphone maker says sales for the quarter that ended Nov. 28 will be between $190 million to $195 million, 40% below the $331 million that Wall Street expected.
Palm, which is still selling an old, uninspired smartphone lineup, says the economy has further pinched sales.
The company will now slash costs by $20 million per quarter by next spring, as it prepares for its Hail Mary pass: A new smartphone platform that no one knows anything about, which will face extreme, building competition from the likes of Apple (AAPL), Google (GOOG), and BlackBerry maker Research In Motion (RIMM).
Late last month, Palm said its new platform was still on track to be released this year, with the first phones on sale in the first half of 2009.
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