Report Claims AT&T webOS Launch Possibly Delayed
Barron's Tech Trader Daily columnist Eric Savitz has written a new post entitled "Palm: Canaccord Cuts Ests Again; Says AT&T Launch Delayed". The piece by Mr. Savitz brings to light a number of issues with the long rumored AT&T launch for Palm's webOS devices. In fact, the Palm AT&T launch is looking to be in peril, according to Canaccord Adams analyst Peter Misek, prominently quoted in Savitz's piece.
Misek maintains his "sell" rating on Palm stock and cautions across-the-board drops in regard to Palm's sales figures and revenue. The most distressing news comes with the report that AT&T has delayed the Pre and Pixi launch to June or July from the originally scheduled April. It should be noted that we have yet to see any solid release date mentioned regarding Palm's latest devices on AT&T other than the already-reported May timeframe gleaned from the FCC documentation.
With the Pre and Pixi already firmly established with Sprint and Verizon, AT&T was the next domestic wireless carrier expected to offer Palm's latest offerings. Unspecified "technical issues" are cited as the primary reason for the delay, in addition to Palm's lackluster sales and lukewarm market response to WebOS. The article concludes with Misek's mention of AT&T decreasing its initial handset order from Palm and reducing the marketing budget for the devices' launch.
This could be an ill omen indeed for Palm, as past incidents with Sprint's unnerving 2009 Pre ad campaign and Verizon's flagging advertising commitment to the "Plus" devices have made for weak launches. These bumps in the road have forcing Palm to dip into their dwindling cash reserves in order to initiate new marketing efforts such as "Project Jumpstart", so any additional losses from a delayed or down-sized AT&T rollout could be disastrous indeed.
Thanks to SeldomVisitor for the tip.