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Analyst: Palm will sell 1.5M Pre devices in first year
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Palm will sell 1.5 million units of its new Pre smartphone in the first year of its U.S. launch, an analyst at Citi has predicted.
The analyst, Jim Suva, said while Palm is still expected to face large losses over the next few years, Citi had an optimistic view of unit sales. Citi went on to note that it was taking conservative views on what the Pre's average selling price and margins would be, and that Palm needed to provide more details on its pricing strategy for the smartphone.
The phone, which was unveiled last week at the Consumer Electronics Show in Las Vegas, will be launched exclusively by Sprint Nextel some time in the first half of 2009.
The company, which once had reliable hits with its Treo and Centro smartphones, has used sales of the now-relatively low-margin devices to keep it afloat. Palm posted a $506 million loss last month in its fiscal second quarter, and saw its sales fall to $171 million, a 39 percent drop in revenue.
Though the smartphone maker got a boost of confidence recently with a $100 million capital investment from Elevation Partners, the onus has been on Palm to deliver something extraordinary that will revive the company's flagging prospects. Palm has struggled to maintain its relevance in the U.S. smartphone market, which is increasingly being dominated by Apple and Research In Motion.
For more:
- see this article
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Comments
Posted by Doc Savage | January 14, 2009 - 1:32pm
Sell side analysts are merely articulate knaves. They work for brokers and traders as slaves.
They come from the deer fields with damp ears. They often cast their spells after too many beers.
They know how to score on SATs. But understand little of the world’s sleaze.
And analysts believe they work behind Chinese walls. But, they really work for M&A lions who make the calls.
The lions use the CFAs to slay… while client lambs cry nay, nay, nay.
And fools believe their DCF models to be science, when in fact it is some voodoo alliance.
Their valuations are but a treacherous witches’ brew. A pinch of toad’s foot turns the screw on you.
Buy, Hold and Sell they cry, “Double, double, toil and trouble; fire burns and cauldron bubbles.” Oh, please spare us from financial troubles.
And after they take on the onus and hose us, they party in the Hamptons on fat bonus.
Posted by Anonymous | January 16, 2009 - 10:59am
I guess this "Analysist" does not read the WSJ and therefore has not noticed that the US/World is in a deep recession and headed into a depression.
Posted by Anonymous | January 22, 2009 - 2:19pm
Doc Savage is right.
The recession will not stop people from buying the must-have devices. The Pre blows away the iPhone and doesn't enslave you in the iTunes world.
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