A Merry Christmas for Palm Retailers

Yesterday, Bear Stearns analyst Andrew Neff said that sales of Palm's and Handspring's devices may exceed expectations this holiday season. He found that 94% of the retailers he surveyed reported demand for Palm devices in line with or better than expectations - and 54% of those surveyed said demand was actually higher than expected. "It is pretty clear, according to the retailers we spoke with, that Palm devices are near the top of a lot of wish lists this holiday season," Neff said. The survey also found demand for Handspring devices was also better than expected, but demand for other PDAs was less robust.

From November 30 through December 10, the Bear Stearns analyst and his associate Ted Chung randomly selected 10 to 12 large retails stores throughout the United States each day and asked the store management a structured set of questions regarding demand for Palm devices and other PDAs. The questions ranged from inventory shortage questions to year-over-year same store sales growth rates. Major chains surveyed included CompUSA, Target, Circuit City, Best Buy, Staples and Office Depot. The survey, which was conducted at the beginning of the holiday season before sales typically reach their peak, found a significant increase in demand for the high-tech devices. "We had one enthusiastic store manager tell us that 'Palms are flying out the door'," said Neff.