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Palm freezing all Pre, Pixi shipments? [U]

updated 03:05 pm EST, Thu February 11, 2010

Palm may be halting February shipments

(Updated with Palm response) Palm has shut down all production of its phone lineup, OTR Global said today in a report. Three contacts in Taiwan's device supply chain claim that Palm has asked Foxconn and Compal without warning to shut down production of the Pre, Pre Plus, Pixi and Pixi Plus for at least the rest of the month. A chance exists that the Pixi Plus will continue to ship but that there may be as few as 5,000 units reaching Verizon this month.

No reason has been given for the alleged shutdown, though sudden stops are often characteristic of a discovered glitch or a last-minute feature change. Some Pre Plus owners have had complaints regarding GPS accuracy, while others have also claimed trouble sending MMS whenever using Wi-Fi. However, regular Pre users haven't normally encountered the same issues.

Any stop in shipments is a potentially deep blow to Palm. The Sunnyvale company is counting on its deal with Verizon to recover from years of sales declines. Its exclusive deal with Sprint in 2009 led to lower year-over-year sales this fall as the popularity of the phone was countered by a lack of carrier support in the US. [via BGR]

Update: Palm tells us that the shutdown is actually due to the Chinese Lunary New Year, which normally occurs around February and sees many technology companies shut operations temporarily.



By Electronista Staff
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Comments

  1. iphonerulez

    Fresh-Faced Recruit

    Joined: Nov 2008

    +2

    Undoubtedly, Palm has run out of money...

    Hardly anyone is buying the Palm Pre and the company has come up short on cash for production. Time to either shut down or be bought out.

  1. worldbfreeofiPhones

    Fresh-Faced Recruit

    Joined: Feb 2010

    +2

    Story Debunked Official Statement Below

    Update: We are still waiting on direct comment from Palm, but Engadget reports that they've spoken to Palm and the halt is nothing to get in a tizzy about: production was just halted for the Chinese new year and Palm had even ramped up production ahead of time in preparation for the pause in production.

    Feel free to go find something else to panic about, folks. We recommend investigating the linkage between the huge amount of snow on the east coast and the pending return of the Old Gods to destroy us all.

    Update 2: Here's the official statement from Palm

    Palm regularly adjusts its product manufacturing levels to manage inventory. In anticipation of the Verizon Wireless launch and Chinese New Year, we increased production levels prior to February, and anticipate ramping production back up after the Chinese New Year ends

  1. SockRolid

    Forum Regular

    Joined: Jan 2010

    +2

    Goodbye Palm

    > Feel free to go find something else to panic about, folks.

    We're pretty much over Palm-fail panic, so it'll have to be something else.
    It's just a matter of time before Palm is completely dead. Zzzzzzz....

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