Palm orders halt on production of Palm Pre, Palm Pre Plus, and Palm Pixis?

By on Feb 11, 2010 at 2:31 PM
Breaking February 11, 2010

Palm-snap

According to an OTR Global report, three different sources have confirmed that all future orders of the Palm Pre and Palm Pre Plus are being suspended as of Wednesday. One of the sources said, “The decision is very sudden, and Foxconn was told to reduce all February Pre forecast to zero on Wednesday and nobody knows whether shipment will resume in March.” We have to be honest, we are pretty baffled by this report. Is Palm being bought by another company? Is this the sign of new hardware — even though the Pre Plus just came out? Let us know what you think in the comments. We will report more as it becomes available. Hit the jump for the breaking news report!

UPDATE: Engadget is reporting that the production lines are being temporarily shut down in observance of the Chinese New Year.

Palm Inc. Alert
Palm Orders Production Halt of Pre and Pre+ in February
February 11, 2010

PALM, S, VZ, 2038 HK, 8078 TT

Sources: 3 sources Taiwan handset component supply chain (all repeats)

Key sources in the Taiwan handset supply chain said Palm Inc. has ordered assembler Foxconn International Holdings Co. Ltd. to suspend production of both the Pre and Pre+ in February. “The decision is very sudden, and Foxconn was told to reduce all February Pre forecast to zero on Wednesday and nobody knows whether shipment will resume in March,” said a key source. The source said the CDMA2000 Pre to Sprint and the CDMA2000 Pre+ to Verizon were affected.

Pixi Production Suspended Too?
One source said Palm also told Compal Communications Inc. to suspend shipment of the Pixi and Pixi+ in February, while another source said that production is still going ahead with the Pixi+ to Verizon, but actual delivery in February will amount to less than 5,000 units.

Reporter: Van Tran
Editor: Hartmut Leuschner

Tags:
, , ,
130 Comments

Related Articles

  • http://www.blackberryunderground.com andrew

    Maybe its Microsoft that is buying them , rumor has it that they were looking at rim…maybe they switched to palm….they used to run a windows device….hmmmm

  • http://www.faisalali.com Faisal

    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

    • David

      The Weasel (sorry, I mean Faisal) claims that they do this on a regular basis. I’m involved in manufacturing and forecasting and if this is true, it’s really a lousey way to run a business. You just don’t shut down a foreign manufacturing pipeline. The ripple effect makes it very difficult to start things up again since you have to notify all of your suppliers to do the same. I could go on, but the Weasel is hiding something.

      • Vince

        Right on, brother! Don’t let those workers have their traditional holiday!

        Man, @David, didn’t you get the memo? As someone *involved* in mfg and forecasting you ought to know that most plants have scheduled shut down periods (we’re not all Toyota, you know). Whether it’s the New Year or the Fourth of July, these are long-held traditions in the U.S., Asia and elsewhere.

        Anyone who gets product from Asia can expect up to a two or three week shutdown this time of year..

  • rlopin

    From a colleague at my company:

    “Sprint has finally turned a corner.They announced a net loss of 148,000 subscribers in the most recent quarter — but that’s combined. On the CDMA side (Palm Pre relevant), they added almost 500,000 new subscribers. The net loss in postpaid comes from continued bleeding of the dying Nextel iDEN network.

    Put in perspective, the CDMA side added more customers than T-Mobile for the equivalent period.

    The firm posted a GAAP net loss, but had positive cash flow from operations, also a good thing.

    This is Good News overall in my opinion — it means Sprint can turn more resources towards the CDMA and WiMAX/4G side of the house and keep our data speeds high. It also means that operations are generating the cash necessary to keep building out the Clear network and give us a national 4G network ahead of the other big telcos.

    Now we just need a WiMAX/CDMA Pre II and we’re in business! ;) “

  • Yadda

    Nice…

  • ilovedessert

    Isn’t the same site that siad, Palm was not going to be sold by V? Not reliable info for sure!

  • lobo

    nokia n900 is a steaming pile of shit.

  • jenna

    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

    ..Details about Palm Pre plus pixi: http://bit.ly/palm-pre-plus-pixi-plus-details

  • Leonard C

    Could it be that its Chinese new year?
    It is quite a big celebration for us, even bigger than Christmas and New Years. Generally alot of employees take a good long break then. So that could make some sense

  • Eric

    I think somebody got caught with their dick in the PALM of their hand, LOL!

  • http://tradersonautopilot.com/quote/PALM.html Palm

    Now is a good time to buy the stock as a bounce play or merger/acquisition target.

  • la verdad

    Easier said than done. The practice you refer to was easy in the 70′s and 80′s, but not so much today. Components from all corners of the world, assembled somewhere else, with packaging somewhere else, etc. Not that it isn’t possible to sniff out the origin of products; rather, it’s just difficult/annoying enough to disuade most consumers from attempting it.

1 2 3 4
blog comments powered by Disqus