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Information WeekThe one-time king of the smartphone market has lagged behind Research In Motion and Apple, and it will be cutting an unspecified number of positions.
November 24, 2008 04:55 PM
Palm said it would be cutting jobs due to multiple consecutive quarterly losses and increased competition from Apple and Research In Motion (NSDQ: RIMM).
The company employs about 1,050 employees but didn't disclose how many workers it would let go.
"Our goal is to consolidate resources behind fewer programs to focus our efforts more effectively," said spokeswoman Lynn Fox.
Palm was once the United States leader in the smartphone market with a dedicated following, but it has failed to keep up with its competitors. Research In Motion is now the dominant smartphone maker in the United States, and much of that comes from taking the enterprise market away from Palm.
In only two years, Apple's iPhone has surpassed Palm in market share. The iPhone has been a hit with casual consumers and enterprise users, and Apple sold 6.9 million units last quarter.
Palm has had a hit with the Palm Centro though, which has sold over 2 million units. The entry-level smartphone has drawn many first-time smartphone customers, but the $99 price means the handset doesn't have that high of a margin for Palm.
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