Palm (NASDAQ: PALM) is dead. That has been written before, but now the company needs an official funeral mass. According to The New York Times, "Palm's chief executive, will announce the debut of a new smartphone primarily for business customers - the Treo Pro." The company also has several other handsets in development.
Palm is now up against smartphone products from much larger companies like Samsung and Nokia (NYSE: NOK). Not to mention the Apple (NASDAQ: AAPL) iPhone.
In the last year, Palm had an operating loss of $105 million on a shrinking revenue base that fell to $1.32 billion. The company has $398 million in current and long-term debt.
Palm is not going to make it as an operating company, but it might be a good licensing entity. That would involve cutting almost all of the company's staff and licensing its brand and product designs to another company, perhaps Samsung or LG. The Palm name still carries some modest weight in the U.S.
Palm's revenue might drop to $100 million, but its costs would be negligible. It would, at least, make a profit, which is something that is out of the question with the company in its current form.
Douglas A. McIntyre is an editor at 24/7 Wall St.
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Reader Comments (Page 1 of 1)
8-20-2008 @ 1:03PM
Mike O said...
Palm is in a no-man's land where their devices lack the pizzaz needed to lure joe consumer and lack the business functionality needed to attract business users.
I think Palm should create two classes of devices which run Google's Android operating system: one which appeals to consumers and another which appeals to business users.
To do this, they will need excellent multimedia capabilities, A-GPS, and to license the Blackberry messaging protocol (similar to what Nokia has done).