It’s been a tough year for Palm, who issued a profit warning yesterday with an explanatory memo to staff from chief executive Jon Rubinstein. It’s sad to see the company struggling as they’ve put a lot of thoughtful effort into the design of their webOS and latest handsets. As John Gruber mentioned in his recent Macworld talk, the smartphone industry needs competitors of Palm’s calibre to keep pressure on the bigger players to continue to innovate.
It seems that Palm are not sure exactly where they went wrong, and it’s not hard to feel a bit sorry for them as their latest smartphones are really quite compelling. The Guardian have come up with a decoded version of the CEO’s staff memo which is not too generous to Palm but much more entertaining than the carefully worded original.
Hey guys! Whatever I say, don’t forget we’re in this together.
This morning we announced preliminary results for our 2010 third quarter. Since the quarter has not yet closed, it is too soon to offer exact numbers, but we stated that we expect to report revenues for Q3 between $300 and $320 million.
We’re not selling as many phones as we thought we would: sales were flat despite the fact that we started selling handsets with Verizon - America’s second-biggest phone network (with 91m users) - in January.
We were expecting sales to go up. They didn’t. This could be awkward.
We also announced that we expect our revenue for this fiscal year to fall below the guidance we gave to Wall Street, which ranged from $1.6 to $1.8 billion.
Given how sales have gone over so far, we’d probably need to double our sales in the next three months to satisfy our original targets. Let’s be honest, that’s not happening, is it?
Full version of the commented memo over at The Guardian.