Palm losing cash hand over fist

Californian based smartphone manufacturer Palm has announced substantial losses in its third quarter results.

The company’s coffers were emptied to the tune of a $22 million net loss in the three month period.

Lacklustre sales of Palm’s phones, which include the Palm Pre, are to blame for the loss.

And those disappointing sales figures are at least partly due to the rise of Android phones, which are currently gobbling up market share. Not to mention the continuing strong performance of the likes of the iPhone and Blackberry.

According to the FT, analysts expected Palm to shift 600,000 smartphones in the third fiscal quarter, but the company only managed to push through 408,000.

It’s all gloomy news for Palm, and the company’s shares fell again on its airing. Palm’s share value has almost halved since the start of 2010.

No doubt there are some sweaty palms in the boardroom, as it begins to look increasingly likely that newer phones the Palm Pre and Pixi aren’t going to have the impact they hoped for.

Story link: Palm losing cash hand over fist