This is not to say that the company isn't still struggling. It is. In fact, Palm recently reported fiscal year 2008 financials, and the numbers were grim. For the full fiscal year, Palm lost US$110.9 million on US$1.32 billion of revenue. The company's net sales dropped some 26 per cent from more than US$401 million at the end of last year's fourth quarter to about US$296 million at the close of fourth quarter 2008. Total stockholders' equity drastically decreased from more than US$1 billion last year to just US$111 million at the end of Q4 2008. And with a new and powerful competitor on its hands, Apple and its iPhone, Palm is quickly learning that the mobile phone space is now a cutthroat playing field on which only the strong will thrive.
Palm also hasn't upgraded its handheld operating system (OS) software in six years, which is truly absurd considering the pace at which its rivals modify and improve their software. BlackBerry-maker Research In Motion (RIM), Apple and Microsoft, which develops Windows Mobile, have all released major handheld OS upgrades in the last year-and the iPhone's barely a year old.
So what does this all mean? Well, first of all it means that Palm's still got tricks up its sleeve and it is not simply willing to lie down and die. You've got to give credit where credit's due, and Palm deserves some. But the company hasn't fully pulled itself out of the gutter and into the light quite yet.
What's your take on the whole thing? Does Palm stand a chance against RIM and Apple, the number one and two smartphone producers in the United States? Do you think success is as easy as my man Rob suggested? Is it really as simple as creating "great product?" Or is there something else to it?
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