Palm dumps WinMo amid mystery of 'missing Pres'
Published: 21 September, 2009
READ MORE: Palm | Linux | WebOS
Continued ...
"I expect a similar trend for the Pre," Rubinstein said.
Some analysts were even more downbeat about the Palm Pre. David Eller of TownHall Research says channel checks indicate that Palm sold through only 375,000 Pre units in the quarter, even though it announced total shipments of 824,000 at an average price of $427. TownHall said in a research note: "We believe that Sprint is paying $500-$550 per handset and if the ASP for non-Pre handsets remained at $240, Palm would have had to ship 540,000 Pre units. We cannot understand where these Pres went.... Our estimation of sell through at Sprint is no more than 375,000 units which would leave one month of inventory in the channel, at a time when the carrier pushed to have the price reduced to move inventory. If this is the case Sprint is tapped out as a channel .... Units shipped implies channel stuffing." This makes Palm highly dependent on strong shipments when Telefonica O2 goes live.
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