Palm announces first quarter results: $164.5m net loss, 823k phones sold
By Nilay Patel 
posted Sep 17th 2009 4:51PM
posted Sep 17th 2009 4:51PM
Palm just announced its first quarter results -- the first to really include numbers from the Pre -- and they're positive (well, depending on how you look at things), with a $2.8m gross profit on $68m in revenue. Actually, that's a little low, since Palm uses the same sort of subscription accounting for the Pre as Apple does for the iPhone, so the unofficial numbers are higher: $100.6m gross profit on $360.7m in revenue. Still, we should point out that according to GAAP (you know, the rules that matter), the outfit had a net loss in fiscal Q1 2010 of $164.5 million, while the non-GAAP net loss was pegged at $13.6 million. Although Palm wouldn't include break out specific sales data, they did say that the "vast majority" of the 823,000 phones they sold in Q1 were Pres, so take that as you will. Oh, and if you were still holding out hope for more Palm WinMo phones, it's all over -- Palm is doing 100 percent webOS development from now on. (Shocker!).Update 1: Rubinstein deftly sidestepped the question of why Pixi was launched on Sprint as opposed to another carrier, saying "They're a great partner and we're looking forward to a great holiday season."
Update 2: Asked about MOTOBLUR, Jon said "I don't know much about MOTOBLUR, but I think to build really great products, you have to control the entire experience -- you have to own the OS and the services around it."
Update 3: Jon just said "We're on a web schedule with updates -- you'll see a steady stream of updates and features."
Update 4: Revenue on accessories and anciliary products were "really very small, immaterial to overall trends." When pressed if it was in the low, single-digit millions, CFO Doug Jeffries emphasized, "very, very small."
I agree that palm's control of both software and hardware will give them the edge over android in the long run
I do not agree for a whole lot of reasons, the most important of which are:
1) Android , at least in the only flavour i know it which is with Sense UI, is vastly superior to webOS , and will get much better much faster because so many more developers are committed to it.
2) Android will give the possibility of changing your phones among HTC, Samsung, Moto, LG,SE, and other manufacturers and keep on using the apps you are used to and the programs you already have, while webOS ties you to Palm only.
3) Open source, open handset alliance sounds much cooler to my european ears than proprietary OS.
@kessando, I don't know who you are agreeing with since the way Palm is handling its OS and created a closed OS/hardware pocket is hurting Palm. You have to consider Palm is not Apple. Apple has a monster brand with a positive brand image and people are willing to put up with the lack of choice caused by the captive OS.. Sales of Pre have DROPPED every month since release for a reason.
3/4 of the people I know who got a Pre returned it.
whoa thats allot of money to waste!
Wow thats alot of money
/www.latestmobilenews.com
Palms fiscal numbers do not matter to me at all. Palm at worst will be bought out by a larger company but they are not going anywhere. I heard the same thing when I bought my last Handspring 600. I currently own a Pre, a Blackberry and an iTouch. The Blackberry is an email/sms/mms machine, The Pre is a muti tasking muscle flexing machine that can handle all things at all times, 24/7 and of course my trusty Apple iTouch is a gaming machine that can also do superb video and web browsing via Wifi. Bottom line is the Pre is a Premiere device that has not yet matured and when its all said and done, I will be tossing out both the Berry and the Apple and using the Pre/WebOs almost exclusively. Most Pre owners including myself realize that we are simply beta testing the device and as a result are OK with it not being a trully perfect phone yet. Early adopters pay a premium for a bragging rights (I got it first).
This is getting stupid guys, where is the damn video of engadget show, you crossed the funny line about couple of days back ..