Palm has only enjoyed a couple months of their new OS release and the analysts are starting to jump on the bandwagon of the Apple fan boys stating the company and their Pre is doomed.
Overall, I think that the analysts are off their rockers and usually miss the mark by quite a bit. In this case we have Morgan Joseph giving a sell order on Palm stock due to lower then expected Pre sales and Collins Stewart analyst stating that Palm is cutting their production rates on the Pre by half a million units for the end of the year. These are both bold statements against a company making a comeback with a solid new product.
Even if sales are lagging behind what were expected a bit here in the states Palm and Sprint both do not seem to be letting up on their marketing onslaught between the TV commercials, online and newspaper banner take-overs everywhere you look.
Also take into account that Palm will be releasing the Pre in four new countries going into the end of the year while opening up their App Catalog to a full release around October. We can’t forget, either, that we have rumors of the Pre showing up on AT&T’s network in early 2010 as well as webOS device number two in the Eos being release on Verizon or AT&T in North America.
It seems to me that if they were having that big of problems with the Pre, we would start to hear rumblings pretty soon about delayed rollouts in other countries and the Eos being released much earlier then expected.
If production cuts are happening and the sky is not falling the other scenarios is that production cuts are happening on the current design of the Pre and that a rev-up on the hardware is coming. That could entail a different camera, screen or keyboard most likely.
We will keep our ears to the ground here at SiliconANGLE and keep you posted. If anyone hears or knows of anything related drop us a line via comments or in the backchannel.
[...] D’Amico reported earlier this week here on SiliconANGLE how a Collins Stewart analyst was stating that Palm is cutting production on [...]