Android’s sales rise crimps Palm and revenue
With the slow introduction of webOS smartphones, Palm, said he expected revenue for the fiscal year well below its forecast of 1.8 billion U.S. dollars. One analyst said the biggest challenge provides Palm applications to compete with Apple, Inc. iPhone and the Android platform. Globally, sales of palm flat, and he loses ground in the U.S.
Palm announced on Thursday it expects revenues significantly lower than the company previously expected range of $ 1.6 billion to 1.8 billion dollars for the fiscal year. The smartphone maker attributed the expected decline of adoption slower than expected, consumer products company, which has a lower volume of orders from airlines and the postponement of future orders resulted in future periods.
“Driving consumer acceptance will take series of products from Palm longer than expected,” said Palm CEO Jon Rubinstein. ” Our carrier partners remain committed, and we are working closely with them to increase awareness and promote the sale of our products for the Palm differentiated.
Building the ecosystem
Gartner has always said it was a bold but risky move for Palm to their new smartphone platform, called webOS found Roberta Cozza, principal analyst at market research firm. She believes that the biggest challenge facing today’s Palm is building an ecosystem around competitive webOS.
Is “What makes a bar or platform, as it is attractive to consumers,” said Cozza. “I think the reason why it is increasingly difficult for the Palm back to the fact that consumers buying a cell phone are known to support the ecosystem – applications that are available to do what they want to do it will be. ”
Apple App Store and Android Market each offer a variety of third-party applications that make these systems very attractive to the consumer while the Palm has webOS as a seller. Sun platforms such as Android is a better deal for developers who put Cozza. “The problem is, Palm will attract more developers to move forward,” she said.
In addition, Android includes many manufacturers in the world, while Palm is a manufacturer of power in a region – North America. According to Gartner, Palm has 4.3 percent market share in North America at the end of the fourth quarter but only 1.2 percent of global market share.
Palm’s worldwide sales have actually been “pretty flat” in 2009, so that “they are not really always” on a global level, Cozza observed. “In Europe I did not even examine the palms is a competitor,” says Cozza. Although wireless carriers in the United Kingdom, the other lobbyists Pre Palm “, the brand is low and its distribution is very limited,” she added.
Increased competition
Last month, Verizon Wireless announced the availability of new mobile phones webOS called Palm and Palm Pre Plus Plus Pixi. In addition, observed the company’s flagship Palm handset Pré a solid product, Cozza.
“If you think the user interface, webOS is of course an excellent platform,” said Cozza. “But the problem is that Palm has on the market today, there is an increased degree of competition from platforms that do the same.”
Even in its core market has lost ground to Palm – the decline in the number four position in North America, smartphone sales in the third quarter, the number six in the last quarter of the year. “I’m not surprised, since Android is gaining momentum,” said Cozza.
“Motorola HTC has held for more than 18 percent of the market share of smartphones in North America in the fourth quarter, driven by sales of Android,” said Cozza. “The competition has dramatically increased, and I think it will be difficult for Palm to go forward.” (toptechnews.com)
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