Palm Could Sell Phones For An Entire Quarter Off Carrier Backlog Alone

The company shipped 960,000 smart phones to stores and distributors in the quarter that ended Feb. 26, 23 percent more than in the previous quarter. However, the number of phones that were actually bought by consumers was 408,000

The bad news isn’t that Palm only sold 408,000 phones (well, that’s actually horrible news, but nothing compared to what’s next). No, the bad news is that a backlog 552,000 shipped phones is sitting on carriers’ shelves.

Think about it. Though trending downward, let’s imagine Palm has 10% better unit sales in the coming quarter than the one just passed. They’d still have 100,000 phones in inventory without having shipped a single phone in the quarter.

Ouch.

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2 thoughts on “Palm Could Sell Phones For An Entire Quarter Off Carrier Backlog Alone

  1. A lot of people have put Palm on a death watch, and for good reasons. A lot of people are saying it’s ripe for a take over and that Dell, Google, Nokia, etc., should be the prime candidates. Getting a hold of its many pioneering mobile patents certainly would or least in theory help them with any patent dispute with Apple, but, however, I think, as i mention in my own little blog, that if anyone should buy out Palm it’s Apple itself, if for no other reason then keeping Palm’s patents and engineering staff out of the hands of Google, Nokia,etc.Steve Jobs stated that he wanted to keep Apple’s huge cash hoard in order to make some big and bold moves, and I think this would qualify as a big and bold move.

  2. …and probably the carriers had some inventory left from the previous quarter.

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