Comments on: Palm Cuts Additional Jobs
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RE: Weak global economy?
Thats yr opinion - but why don't you try contributing something thoughful that actually relates to the subject at hand? Palms sales are not bad - they are actually making $$$ - unlike many in this space. Whether or not you feel that Palms products 'suck' has nothing to do with these layoffs as - clearly - the majority of consumers don't think they suck. Palm has the majority of PDA sales and has actually seen a slight increase in marketshare in the last year. The problem is that - and this IS FACT - overall PDA sales have been down this year. That means that the assertion that the global economy is responsible is a far more likely truth then yr troll assertion it is because 'Palms suck'. Get a life.
RE: Weak global economy?
----------------
TT First Adopter, Purchased 10/29/2002
Palm III, IIIc, T|T
RE: Weak global economy?
But I do agree that more memory and a 320x480 screen would be nice.
RE: Weak global economy?
From observing comments on this web site, I have noticed that too many consummers are not receiving, from Palm, the features they want in a PDA.
"Competition never sleeps, TSC". Palm has slept through too many obvious consummer disppointments. Companies should listen to the voices of the consummer and product, without delay, the products and improvements needed and wanted. If not, competition well.
No satisfaction, equals no sales, no sales equal company lay offs! It is a simple as that. Keep truth in the open and uncluttered.
TSC
RE: Weak global economy?
RE: Weak global economy?
Or can't for that matter...:)
--Devan-- | UZI4U182@suscom.net
www.devanstavern.tk
www.devandeshong.tk
Current PDA: Sony CLIÉ PEG-SJ30
RE: Weak global economy?
Let's face it, people who are not computing scientists often make their decision solely on the specs alone. I have had to explain more than a few times how 8mb is "enough" when pocket pcs now have 64mb. I have had to explain how a 33Mhz CPU is just as good as a 400Mhz CPU. They do want the latest technology.
So, what does it hurt to include 64MB onboard and a 320x240 in the high-end products, and charge maybe $500 for it? Toshiba has been doing it, ViewSonic has been doing it, and now even Dell is doing it now. Not like there's no profit to be made.
As much as I like Palm OS, I do want some multitasking capability, a bigger screen, and a CPU that doesn't castrate GPRS in a smartphone.
RE: Weak global economy?
Wolfy, the problem is in the current economy not enough people are buying the higher end stuff!! Also, besides Dell it's questionable whether any of these companies are making profits. In fact, if it wasn't for the Zire, PalmSG losses would be even greater (please refer to the link I posted below). Furthermore, the hardware gap between PalmOS and PPC pda's is shortening, not widening. Devices like the NZ90, NX series, T|T, TG50, iQue, and possible T|C testify to the increase in hardware performance. In addition, one has to conmpare the latest technologies of both platforms. Its simply not fair to compare OS 4.1 devices with PPC 2002. In terms of price, its true Dell has undercut many PalmOS (as well as PPC) OEM's w/Axim. But this too is changing, witness the sub $350 price of the T|T these days. Like I've said ad nauseum before, PalmSG needs to deliver a sub $300 OS 5 tablet pda to market to shut the competion up. That would be grand...
RE: Weak global economy?
2: If Palm is outselling everyone, why is it dying.
Well, maybe thats because SONY makes other products other thatn PDAs. In any case, I certainly do not think Palm is dying.
RE: Weak global economy?
A Palm OS 5 device below $300 would sure be nice. Tungsten T is almost there with some online retailers selling for $308 before shipping and taxes, don't think I'm not tempted. But I'm just holding out for a full screen 320x480 version (with possible poor battery life).
I guess my disappointment stems from how easy it would have been to include the extra ram and how they avoided it like a contagious disease. A 256mb DDR module for PC today costs maybe $30, and it's basically the same chips. Buying bulk would probably be even cheaper. So their cost for putting 64mb of RAM onboard is probably around $7.5 per PDA.
They shouldn't be charging significantly more for these beefed up machines (hence my point that they should do it) but from my dealings with manufacturers of portable computers, they will charge an additional $200 for extras that cost $20 to put in.. so that's where the $500 figure came from.
At that price maybe it wouldn't be so popular but you are really not doing any worst than Pocket PC manufactureres there either.
RE: Weak global economy?
RE: Weak global economy?
1) I agree and disagree about the memory issues people talk about here:
a) Palm's high-end OS5 devices should come with more memory. They're charging a premium price for it and should give you more. Plus, when you're charging more, you need to win in the marketing arena. If your device comes with 16MB and the competition's comes with 32MB or 64MB, well...
b) Along those lines, though, a Palm can get by with less RAM for MOST tasks than a PPC. My original Palm 5000 had, what, 512K? For PIM usage and a couple little games or applets, it was plenty. The Zire's non-expandable 2MB is plenty for the average first-time buyer looking primarily for a PIM device.
Regarding gfunk's comments about not comparing Palm OS 4.1 to the PPC OS, I disagree. OS4 (and earlier, even) compares quite well to the PPC OS for many tasks (PIM, specifically). Multimedia? No, you really need OS5 to compare favorably (and beat in many instances) the PPC devices, though even the CLIE's managed to push the limits in multimedia with their OS4 devices.
Scott
Something doesn't smell right
Could it be that the margins on the Zire and the rest of their line are so thin they cannot sustain the business?
Just goes to show anyone can whip up a press release. Actions speak louder than words. I am glad that everyone got at least a 3mo severance package. I hope that is enough time for everyone to get back on their feet. I've been laid off after an acquisition before. No fun, even when you know it has *nothing* to do with you or your team at all.
RE: Something doesn't smell right
According to market information firm NPD Group, the Zire was among the best-selling PDA in U.S. channels during the fourth quarter of 2002. Zire accounted for 13 percent of Palm's unit sales during the fourth quarter. In addition, NPD Group said the Palm Zire handheld had the highest sales figures during its three months after introduction, with more than 228,000 Palm Zire handhelds sold during the important holiday selling period.
http://makeashorterlink.com/?C6C7213A3
Quote: "Could it be that the margins on the Zire and the rest of their line are so thin they cannot sustain the business?"
If Dell can make a profit off $250 Axims that supposedly cost only $150-200 bucks to manufacture, why couldn't PalmSG be making a profit off the infintely cheaper Zire? They're basically selling a product with four year old specs for $100 bucks and they're going like hotcakes... um I think they're making a profit.. sorry...
Quote: "Just goes to show anyone can whip up a press release. Actions speak louder than words."
Are you serious? This coming from the master of propoganda at ppcts? very funny.. :)
RE: Something doesn't smell right
Come on Ed, don't make me have to run you out of here again. ;)
I'm still waiting for that article, too.
-Bosco
Proud Member of the Top Non-Mods
Members: abosco and ImpReza M3
RE: Something doesn't smell right
"If Dell can make a profit off $250 Axims that supposedly cost only $150-200 bucks to manufacture, why couldn't PalmSG be making a profit off the infintely cheaper Zire?"
You got me. And with all the great sales announcements from Palm, they are still cutting another 20% of their workforce. Spin it however you want.
RE: Something doesn't smell right
EdH,
The layoffs at PalmSG are the result of the general down-turn last year in the pda industry overall. If you had read the link I posted, you would have realized that the Zire was one of the few reasons why Palm's losses weren't as bad as anticipated.
Furthermore, how do you think the PPC divsions of HP, Toshiba et al would have fared if they were independent pda businesses like PalmSG is? It's obvious the losses in those division are shielded by the larger revenue of the company. Can you give us a detailed synopsis of the profit/loss margins HP is having with their PPC line, I have never seen one? I would imagine their losses would be just great if not larger than PalmSG in the current economy...
RE: Something doesn't smell right
RE: Something doesn't smell right
Hey, I can't help it if Microsoft and their OEM partners have a better business model than Palm and theirs. Only Sony seems positioned to nurse a fledgeling technology until it reaches a critical mass.
RE: Something doesn't smell right
And you're the one complaining of mis-leading press releases!? And what is especailly so great about M$ business model anyways? If it was so great, then why after 4 years in the market and despite all it resources and advantages has M$ only been able to garner 26% of the total pda industry? What's so great about that? If PPC were so great, then they haven't they been #1 already! I keep hearing that they will, but it never seems to happen...
RE: Something doesn't smell right
Palm will be making cash no matter how you cut it. The Zire is the mass seller and the money maker. Sure, the profit margin isn't high, but if it's sold in bulk, it's better for the company than a lower selling, higher profit margin device.
Unless you neglect to realize it, people have been shrieking Palm's death since 2000. It hasn't happened and it won't happen any time soon. You can take that rhetoric right back to PPCT. I don't want any of it. Oh, and I'm still waiting for that article.
-Bosco
Proud Member of the Top Non-Mods
Members: abosco and ImpReza M3
RE: Something doesn't smell right
And if Palm's model is so great, why have they lost that 26%?
Bosco: "Palm will be making cash no matter how you cut it."
LOL!
Guess again. Here is Palm's cash flows from operations for the past 5 reported quarters:
Nov 2001 -258M
Feb 2002 -264M
May 2002 -253M
Aug 2002 -26M
Nov 2002 -31M
THat is not making cash any way you cut it. Despite having $250M in the bank they aren't making enough off of interest to make a difference. They didn't even have a positive cash flow for the quarter when they were given the $50M by that still unnamed investor in 2001.
RE: Something doesn't smell right
Edh, are like Bill Gates little "mini-me" or something? Sheesh! Look, how about if I put it to you this way. I think the fact that PalmOS has limited the growth of PPC to 26% despite the inherent weaknesses of PalmOS, and despite the enourmous power and strength of M$ is a testament to something right PalmOS is doing...
Furthermore, why are you soo keen to have total M$ domination here. Why would that be good for anyone? The competiton here is good for all consumers afterall, unless of course if you're on M$'s payroll I presume...
RE: Something doesn't smell right
The future of the platform hinges now entirely on whether PalmOS6 becomes a radical departure from PalmOS4 and a suitable platform for the future, or whether it is more incrementalism. If it isn't a radical departure, Palm is dead as a software platform.
It didn't have to turn out this way. Palm's big mistake was to go it alone for the development of a post-PalmOS4 system. They should either have joined forces with Symbian, or have gone the Sharp Zaurus route. The latter would have cost them nothing, they would have an excellent platform by now with lots of third party applications, and they could still have provided the same level of backwards compatibility as in OS5. But Palm wants to keep complete control of the platform, so they bet the farm on some nebulous in-house development. And it looks like they may well lose.
RE: Something doesn't smell right
What disappoints me, is that they've abandoned good ideas which lacked "sizzle" but, with some tweaking, were very important. In many cases, they expended a good deal of money purchasing the companies that developed these things, too. Some examples:
1) PQAs - The promise of low-cost high-speed wireless service has been promised for a LONG time and, guess what? It still aint here. PQAs allow for quick wireless applets when the data channel is low-speed. PQAs don't replace the want/need for web browsing, they're two different technologies which meet different needs. Palm should be improving PQAs (they added some nice features in OS4), not dropping it, which is what they've done with OS5.
2) WeSync. They spent a bunch on this company and now it's history. It needed some tweaking, to be sure. But it was a fantastic concept. The problem was that it was a bit before its time because it worked best with wirelessly connected PDAs. As wireless became more common, they should have been investing more effort/marketing around this, instead they dropped it.
3) MyPalm portal. Specifically, the technology to sync your PIM data wirelessly to a server-based repository. This also allowed friends to check your schedule from any web terminal. Again, Palm spent big $$$ on a company to get this. Now it's dead.
In case you're missing a recurring theme here, it's wireless. It's interesting to note that the much-maligned Yankowski was at the helm when these companies and ideas were hatched and these technologies were dropped after he left. I can't give him credit for them and there certainly didn't seem to be a lot of love lost for him, but it makes me think anyway. Getting back to my point...I'm not seeing any REAL innovation wirelessly from PalmSource these days. I mention PalmSource, not PalmSG, because the REALLY IMPORTANT work that needs to be done is on the software-side (back-end servers, OS changes, applications, etc.). PalmSource needs to be truly innovating here with some creative ideas and their hardware OEMs will build the stuff.
With OS5 and the way OS6 seems to be going (eye candy), PalmSource seems to be trying to match Microsoft, and ignoring the true innovators who will come out of nowhere and eat everyone's lunch. They should be looking at things like the Danger HipTop, dissecting it, and learn how to think outside the box again.
Scott
RE: Something doesn't smell right
Journalistically, both are probably correct, but it boggles me how Palm can be under so much strain in the market they basically invented, which has grown incredibly and is still "poised for growth".
Also, if Palm is sucking wind, as I've opined for a while, Handspring will be in Chapter 7 or 11 (70% chance of the former) by yearend.
the VisorMiser
_______________________
Where will ya be when ya get where you're goin'?
RE: Something doesn't smell right
How the heck do you have even an inkling about what OS 6 is? I think yr jumping the gun by making such an assumption. I think that one of the reasons Palm has been so slow - too slow for most geeks who visit sites like PIC - is because they've been careful to integrate new technologies without abandoning the 'Zen of Palm thing'. Of course you can't please everbody. You think Palm shouldn't be chasing PPC type features, while many people on PIC and other PDA sites scream daily about how the 'Zen of Palm' is a croc and how far behind Palm is. In the end the market will decide.
BTW - PQAs really could never be considered anything but interim technology. It works great - but it is inevitable that people demand a more multi-media type internet experience from their PDAs - just like their desktops. The cost of devices and network services that provide this capability have come down dramatically and will continue to drop until it hits a price-point that makes it accessible to average consumers. When this happens there will be zero room for archaic technology like PQAs. Is Palm jumping the gun? Maybe - but theres no doubt that the writting is on the wall for PQA technology.
RE: Something doesn't smell right
Jumping the gun? Where is this wireless multimedia technology that you claim everyone wants? First off, I disagree that that's what everyone wants. We have that capability with broadband connections at home, and many companies were thinking people were going to be doing all sorts of multimedia-intensive stuff at home, which they aren't. On the PDA front, where is this technology? MS is closest, perhaps with the ability to do some streaming stuff on a PPC connected wirelessly, but Palm doesn't have this, so how could it be anything BUT premature to cut off PQA support until you've got something else? But again, I disagree with your premise that that's what people want.
I'd contend that what people want are things which make their lives easier. Wireless IM and email are the basic needs in a wireless world. Being able to check on my wife's calendar wirelessly is a big one, IMO. Being able to schedule a meeting and get confirmation by everyone within 10 minutes because they're all wirelessly connected, etc. Streaming video and audio? Sure, when the technology and costs get there, but that's a ways off (in terms of decent speed and decently priced wireless infrastructure - the ARM hardware is probably good enough already).
Getting back on-topic, a good business model involves recurring revenue. Back when rumors of a sub-$100 PalmSG PDA were going around, I predicted that if Palm was smart, it would include a minimum of RAM but have an SD slot. The uninformed average consumer, would invest in Palm-branded SD memory expansion, pre-packaged games on an SD card, etc. When Palm sells someone a Zire, they can hope that person will purchase some accessories (case, etc.) but that's about it. WeSync and MyPalm could have given them recurring revenue, but they opted not to charge for it at all, then they dumped it. Couldn't there have been something in between? Their i705/Mobitex offering could have been great. But, it needed a thumbboard built-in and while the unlimited data plan was priced right, they overpriced the device. Surprise, surprise. They didn't sell enough of them to be able to maintain the unlimited data plan. So, NOW they're lowering the hardware price to what it should have been all along. They haven't been able to get all of the pieces together properly since the original Palm, IMO.
Scott
Zen of Palm
Palm evidently wants to build high-end handhelds, otherwise they wouldn't be releasing $400 handhelds. And for that kind of hardware, they have to create the corresponding poweful software.
The other choice is that they stick with Zire-style devices. Then, they can practice minimalism. But that's not much of a business.
In different words, the "Zen of Palm thing" is beginning to feel increasingly like the "Zen of DOS thing".
RE: Something doesn't smell right
>>I think Palm is at the end of their rope, given the current state of PalmOS: there isn't much further any vendor of Palm devices can go given the current OS.
Unfortunately, our licensees don't generally pre-announce their new devices. But I feel very confident that this statement is incorrect. If you want, we can look back in, say, six months and see if the products bear me out.
Mike
CCO, PalmSource Inc.
RE: Something doesn't smell right
Thanks for the response. But my point isn't about the kinds of wonderful hardware people can put together and that they then put PalmOS on, it's about what I as a software developer can actually do with that hardware.
People can throw lots of hardware into Palm devices. But as a software developer, I can't use it without spending a huge amount of time on it, if at all. The Clie NZ90, for example, is a great piece of hardware. I'd love to port some imaging software to it. But PalmOS simply isn't up to it: it doesn't have APIs to use the camera, it doesn't have a reasonably flexible windowing system to move the GUI code over without major changes, and it doesn't have the memory management and file I/O to cope with large amounts of data. Sure, I could work around all that somehow, mixing 68k and ARM code, using Sony proprietary APIs (if they have been published at all--I can't find them), completely rewriting the GUI, etc.
But what's the point? The amount of effort involved would be worse than porting to real-mode DOS. The code is much easier to port already to the Zaurus and (gasp) even PocketPC, both of which have true 32bit operating systems, and both of which are perfectly reasonable choices for vertical applications; in fact, battery life, size, and weight on non-Palm hardware has improved so much that they are better than Palm now. And Palm claims they will come out with a decent, native OS for PalmOS 6 anyway, and that will be real soon now, so why invest a lot of time and effort in interim solutions?
So, yes, licensees can slap lots of hardware into a little box and run PalmOS 5 on it, just like Sony does. But that doesn't make that an attractive platform for anything. Devices like Sony's are, increasingly, complex pieces of hardware that also, in some corner of their brain, happen to run some form of PalmOS for some PDA functions.
I like my little Palm for PDA functions--it's great at that, and I wouldn't trade it for something else. But as a handheld software platform for vertical apps or even complex personal apps, the Palm is a non-starter in its current form for me as a software developer. I do hope that PalmOS 6 will be radically different; it has to be in order to remain competitive.
RE: Something doesn't smell right
The Tungsten T has been a disaster and the M5xx series is too old to be a big player. Palm is left with nothing but very VERY low margin M130/Zires to pick up the slack.
But keep hyping it up gfunk and bosco if it makes you feel better. The facts are not with you.
RE: Something doesn't smell right
Scott
RE: Something doesn't smell right
palm is not dead!
RE: palm is not dead!
Cutting off dead weight
I know I'm coming in late but...
Of course there are two other sides to this; my IIIC was always a piece of crap with flaky digitizer, though my wife's (which was manufactured earlier I think) is great. And second, when I browsed for a replacement, I was a lot more attracted to Sony's midrange offerings (~225/250) that had that lovely
320x320 resolution (and the ONLY reason I wanted that
was for doodling...)
In terms of the Zen of Palm...I don't think it's like the Zen of DOS. The program launcher and builtin apps configuration is very friendly; orders of magnitude friendlier than PocketPCs, at least circa 2000-2001 when I last tried to use them. That's the true appeal of Palm, and it has to compete with PocketPC's Outlook tie-in. (Trying to shrink a windows desktop to work on a handheld has always been a terrible sounds good works horrible idea.) But that UI is certainly rich enough to support launching all sorts of wacky apps, at which point you get into how good is the API and multimedia features... which should in turn follow the same rules of UI elegance and simplicity that the core PDA apps follow. The Zen of Palm is usability, the minimalism is just a byproduct of affordable products with good battery life. "Wowie" apps will become important over time, esp when people have more disposable income.
It's amazing how bitter these boards get. All that Shaudenfraude when Palm stumbles...I hope Palm gets its pricepoints together, continues developing and selling its OS to other vendors. I'm convinced the PDA world is much better because of Palm than it would be if it had just been WinCE vs Newton.
RE: I know I'm coming in late but...
Of course. That's why they want to move into high-end organizers and vertical apps, but they aren't delivering the software or hardware to do it.
"It's amazing how bitter these boards get. All that Shaudenfraude when Palm stumbles..."
It has nothing to do with that. I'm a software developer, and I don't like being tied to Microsoft. But the only widely used alternative I have is PalmOS 4/5, which imposes serious limitations on otherwise pretty nice hardware like the TT, the NZ90, and other models.
Either I want Palm to deliver a modern 32 bit handheld platform--they have had more than enough time to develop it--or make room for someone who does.
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Weak global economy?