Is Palm’s Last Hope To Build A Tablet? Um, No.

Perhaps, Palm could reverse its fortunes and regain its former glory if it went back to its PDA roots and developed a tablet PC to compete with the iPad?

Palm is bleeding. Last quarter’s results were a disaster, and even more recently an analyst cut the price target to $0, leading to a pummeling of the stock, down nearly 30%.

Add to that the fact Palm couldn’t even get the hardware of the original Pre right at a time when they had good press and solid financial backing. Yet now it’s being suggested their “last hope” is to design and bring to market a completely new product? That’s not going to happen.

Palm’s real “last hope” is almost certainly to sell. If not the entire company, than at least the webOS and their patent portfolio.

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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.