Specifically, Palm’s smartphone sellthrough was just 408,000 units last quarter, down 29% q/q and down 15% y/y. This is worse than expected — remember, a year ago, the Pre wasn’t even on the market yet. Mike Abramsky of RBC was expecting 650,000 units, for instance.
How does that compare to Palm’s rivals? Apple is expected to ship 7.5 million iPhones this quarter. And based on Google CEO Eric Schmidt’s claim that 60,000 Android phones are shipping per day, Google could be shipping roughly 5 million phones per quarter. So Palm’s performance is pretty terrible.
Total shipments were 960,000 units, which means there’s a lot of inventory sitting around. (Which will probably have an effect on next quarter’s shipments.)
“Our recent underperformance has been very disappointing, but the potential for Palm remains strong,” said Palm CEO Jon Rubinstein, in a statement. “The work we’re doing to improve sales is having an impact, we’re making great progress on future products, and we’re looking forward to upcoming launches with new carrier partners.”
Palm also used the opportunity to take up new GAAP accounting rules, reporting a $22 million net loss on $350 million of revenue. At the end of the quarter, Palm had $592 million in cash available.
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