Analysts Cite Slumping Pre Sales
Palm has received a couple of analyst downgrades today. In new client research reports, two market analysts are getting bearish on Palm citing slumping sales of the Palm Pre and even possible production cuts.
Via Tech Trader Daily, Morgan Joseph analyst Ilya Grozovsky writes in a research note that his checks find Pre sales in July were down to about 100,000 units, from 200,000 in June - and that August is tracking to be even lower than July. He cut his estimate on Pre untis for the August quarter to 350,000 from 400,000, which already was low relative to Street expectations. He also contends that non-Pre shipments in the quarter were lower than expected due to cannibalization by the Pre.
Collins Stewart analyst Ashok Kumar also concurs on the above sentiments. His estimate is that Palm shipped under 300k units in May and June and feels that Pre momentum has peaked. He also says that production levels have been cut "due to weakening demand."
Both analysts have lowered their ratings on Palm's stock and are also raising questions about the companies long term prospects.
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