Palm announces losses despite Pre success

gallery

Palm has announced that it has lost money in its latest fiscal quarter, despite strong sales of its flagship Palm Pre handset.

The company reported that it made unadjusted net loss of $164 million (£100 million), with revenue of $68 million (£41.65 million). However, after taking one-time costs following the launch out of the equation, losses were only $13.6 million dollars on revenues of $360 million.

The losses comes despite selling 823, 000 smartphones during the quarter, which represents a 134 per cent increase on the last fiscal quarter. However, this was still a 30 per cent year-on-year decrease from its sales this time last year.

Palm's outlook was still positive. "We`re making significant progress with Palm's transformation, and our culture of innovation is stronger than ever,” said Jon Rubinstein, Palm’s chairman and chief executive in a statement. “We`re launching more great Palm webOS products with more carriers, and turning our sights toward growth."

The Palm Pre was released in the US in June to generally positive reviews, and in the UK it will be available exclusively on the O2 network, which also carries the iPhone. It is now available to pre-order in the UK from the third-party online retailers.

Palm has also announced another WebOS based phone called the Pixi, but has not yet given details of when the European launch will be.

Email to a friend

Print this page