It almost seems hard to believe when you take a moment to recall a few years ago when Palm one the industry leader in PDAs followed by an incredibly successful transition into the smartphone market.
Now, a few years later, Palm has posted its eleventh consecutive quarterly loss, which sent shares plunging more than 25 percent!
The company admits that their flagship Pre and Pixi smartphones, which were launched last year, haven't paid off as expected. It shipped 960,000 units in the quarter, only 408,000 handsets sold. About 552,000 units are left collecting dust on store shelves. To give a sense of comparison, rival Apple moved 8.7 million iPhones in the same period.
Confirming just how grim sales have been, Verizon has already discounted the Pixi Plus by 20 percent and is offering a buy-one-get-one-free deal with a two-year contract. Sprint has also cut the price on a Pixi to $50 (50 percent discount).
The rumor is that Palm hopes to rekindle its slumping market by offering an upcoming AT&T version of their devices but speculation is that acquisition of the company may be inevitable.