Palm's third quarter was a disaster, the fourth-quarter outlook was worse, and the company is stuck with an inventory glut as Verizon Wireless customers went with the BlackBerry Tour and Motorola Droid over the Pre Plus and Pixi Plus. The big question: where does Palm go from here?
Simply put, Palm is in a vicious cycle that goes like this:
Sales in the company's third quarter were weak. So weak that Palm's sell-through in the third quarter was 408,000 units vs. a sell-in of 960,000 units. That means Palm seriously overestimated demand for its devices. … Read more