Comments on: Motley Fool Article on Palm's Future
A mildly ominous article has been posted by the Motley Fool's Tim Beyers. Dated June 30, 2006, the article goes into considerable comparing and contrasting Palm's fiscal year '06 standings vs. the previous two years. Several reasons for the company's first quarter of negative cash flow since 2003 are also illustrated. Of particular interest is a statement concerning a 63% rise in Palm's inventory in Q4 2006. The article does not mention if any distinction is made between older, leftover PDA inventory or unsold Treo inventory. Recent rumors have pointed to high return rates for the 700w. Additionally, Treo 700w's sales figures have been vaguely disclosed as, at worst, disappointing or at best, slower to ramp up than expected by Palm. These factors combined with the relentless competition by other handset manufacturers could account for much of the negative news. A recent article on Forbes points to an upcoming smartphone price battle due to competition with Motorola.