Buried in the news that HP is buying Palm is an updated lower guidance for the fourth quarter, otherwise known as a warning.
The Company expects revenues for its fourth fiscal quarter to be in the range of approximately $90 million to $100 million on a GAAP (1) and a non-GAAP basis. Revenues for the fourth fiscal quarter are being impacted by slow sales of the Company’s products, which has resulted in low order volumes from carriers. Palm also expects to close its fourth fiscal quarter with a cash, cash equivalents and short-term investments balance between $350 million and $400 million.
$90 million in revenues for an average ASP of $300 would put unit sales at 300,000 for the quarter. RIM just sold 10.4 million devices, Apple sold 8.75 million. 300k is just an astonishingly small number.
Huawei has largely rejected Palm’s request for a buyout, a tip said this morning. Palm had reportedly proposed that Huawei take over the company in mid-February but hasn’t made any progress since. It’s not clear what objections, if any, Huawei might have.
via Palm rebuffed by Huawei on takeover talks | Electronista.
Dubinsky gets it, Glaser no so much.
[Rob Glaser] said with those “super” abilities, mobile has a great potential, but if Apple gets its way, the wireless industry could end up like the MP3 industry. The other option is for things to go the way of the PC, which he considers more horizontal.
Sorry Rob, you’re still missing the whole point. It’s not incredible, it’s the only way to go. What’s incredible is that anybody tried to do it differently.