Palm`s Pre Sales Increase by 134%

19th September, 2009 by caitas
Tags: , ,

Today, Palm Company announced its outcomes regarding the business summer quarter that has just ended. The company`s products recorded an increase in sales of 134 percent and from the 823,000 smartphones which were shipped by Palm to the retailers almost all of them were further sold. This figure represents a decrease of 30 percents compared to the numbers recorded the previous summer, but nonetheless, the increase of 134 percents has improved the decline state in which Palm was prior to these sales.

Ex Apples executive and currently Palm`s CEO, Jon Rubinstein states that the organization`s new strategy is to focus on “culture innovation” which it had previously forgotten and also focus on the growth of the company in order to make money.

Moreover, Palm Company recognized that this financial growth was not due only to the Pre device, there were other factors too. The organization recorded in the spring of 2008 a gross of $97.3 million. In spite of this growth, the company`s financial figures decreased by $2.8 million when the company recorded a loss. Moreover, the net losses increased from $39.5 million sum recorded in 2008 to $161.1 million the company incurred in the former quarter. These encountered losses were said to have appeared due to the aggressive marketing strategy the Palm used to promote its Pre device compared to the other marketing strategies used for PalmOS and Windows Mobile-based phones. Other agents that provided success for the Pre were the research and developments undergone by the company to produce the innovative model. The organization acknowledged that its accounting practices also marked the new device`s success on the market. Palm copied the Apple`s practices when they launched the iPod, the revenues from the Pre sales and for other webOS mobile phones are recorded for the overall course of 2 years and these gains do not represent the company`s cash in hand account.

Asked about the future, Palm focuses very much on increasing the promotion and sales of Pre device to new markets like Great Britain which is planned to retail Palm`s innovative device by the end of the year 2009. United Kingdom will also expand the market for Palm`s new Pixi mobile-phone which is scheduled to be launched at the price of $99. Nonetheless, Palm states that it expects its fall quarter sales to drop down compared to the ones recorded in the summer quarter because the decrease of the sales of mobile phones supported comprising a non-web operating system and the stalling of post-launching demand for the new Pre device will lead to a decrease in all the products` distributions.

Palm`s competitors Apple and Research in Motion clearly did not expect their rival to get to the same sales level, but as we all know the wheels always spins. The increase of 134 percents in the organization`s sales meant a great competitive advantage for the company considering the fact that lack of Palm operating systems orders and under-competing Windows Mobile OS mobile phones made the company`s customers to turn their focus on other substitutes such as the iPhone and BlackBerry models.


  • Share

 

Readers Comments