Palm lowers sales expectations

Palm

Just days after a number of research firms predicted lower sales numbers for Palm and its webOS devices, Palm has issued an updated guidance report, cutting its revenue targets.

Revenues for the quarter and full year are being impacted by slower than expected consumer adoption of the company’s products that has resulted in lower than expected order volumes from carriers and the deferral of orders to future periods. Accordingly, Palm expects fiscal year 2010 revenues to be well below its previously forecasted range of $1.6 billion to $1.8 billion.

Palm CEO Jon Rubinstein indicated that the company is “working closely with carrier partners to increase awareness of its products and drive sales.”

Palm’s slowing sales could also influence competitors’ thoughts of acquiring the beleaguered company. Companies like Dell, Microsoft and RIM, which have all apparently considered acquiring Palm, may now be reconsidering doing so or considering doing so at much cheaper prices. Worse, it could simply disappear…

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