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

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

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