Yankowski Admits Mistakes to Shareholders
Palm held an event today that the company CEO has probably been dreading for some time: their annual shareholders meeting. Carl Yankowski had the unenviable job of explaining why the company's stock price has dropped so steadily over the past year.
According to Cnet, he said some of the blame could be placed on the worsening economic situation, but "We also made mistakes."
This was in reference to the company announcing the m500 series long before it was available, which dried up demand for their current products. This severely hurt their cash flow during the second quarter of this year. They also committed to taking large shipments of parts needed to product handhelds at a time when demand was slowing, which left them with millions of dollars worth of unsalable inventory.
Still, Mr.Yankowski says the company is turning itself around. "We know where we erred...We know what needs to be done to turn the corner...and we've begun." The company has cut operating costs by about 25% and reduced the amount of inventory it has in the channel. In its most recent quarter, revenues were up 30%. While the company expects to take another small loss this quarter, they are hopeful of returning to profitability shortly thereafter.
There was one bright spot in the day. Palm's stock price rose almost 40% today, though that's only to $2.09. The high for the stock in the past year has been $67.38.
All this has gone on against a backdrop of a slowing U.S. economy which has led to decreased demand for all types of computers.
At the shareholders meeting, Palm also showed off some ads that will begin appearing in the near future.
One, aimed at corporate buyers, has the theme that the Palm OS has the lead over the Pocket PC OS in software and is more popular users and Chief Financial Officers.
The company also intends to have a consumer-oriented ad campaign during the holiday season that emphasizes the advantages of the SD slot.
Handspring has also had a bad year and will be releasing its most recent quarterly figures next week.
Thanks to Ravdeep for the tip. -Ed
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RE: Understatement of the year
They are in the same trap (growth at all costs) as the web hosting companies (PSInet, Exodus, etc) in that they gave away the PalmOS so cheap that revenue from that can't account for much. Their hardware hasn't been visionary lately. Right when people (including Don Imus) are buying the RIM because they heard it remained connected during the tragedy, Palm postpones the successor to the palm 7.
As a matter of fact, I think I could do a better job CEO'ing Palm. You people on the board, if you're looking for a replacement, I'm your man. Give me a call, and I'll quit my day job in a heartbeat.
David in Pflugerville, TX
RE: Understatement of the year
possible, we have to cut them some slack. Its tough to
turn around a billion dollar company for the same reason its
hard to stop a train, inertia. Lead time for products is months
and trying to hurry them out only gets you mistakes. Despite
what some have said the m505 sold well and Palm looks
to be on track to make money again. Not being in a
recession would help but they'll get there. Handspring
is a different story. They make good stuff but unless these
new wireless models sell real good, they could be gone this
time next year.
RE: Understatement of the year
Palm does not have what it takes to win this market as they stand now. Period.
RE: Understatement of the year
RE: Understatement of the year
They weren't right for geeks but have outsold all other handhelds over the past year. The were hugely successful with the PIM crowd who maybe want to do some other stuff, too. The m100 and m105 have outsold all PocketPC ever by any company *combined*. Microsoft's handhelds appeal only to a small market with deep pockets, not the common man who skips on past the $600 part of the aisle and heads down to the inexpensive end.
> I've been using a Palm for 4+ years and I have supported
> them along with the rest of you.
We all think you are a liar and are being paid by Microsoft to post on Palm fansites. Don't try the "I'm a Palm user too" trick it doesn't work, troll.
RE: Understatement of the year
RE: I almost feel sorry for him.
Don't feel sorry for me. I'm successful at my job.
RE: I almost feel sorry for him.
Lets face it people. If you are here on this site posting messages you are indeed a PDA geek, a technology buff or whatever else you want to call it. This mean that you and I are feature crazy and love to see new additions to our gadgets quickly since we use them constantly.
This is not the case for the vast majority of PDA users. Most people I know use palms for a much more general utility and don't even conceive of having the features that we are all longing for.
As far as Microsoft goes in the above post. Damn, of course the don't sleep, they are the largest software firm in the world! They can afford to dump resources wherever they want. They don't even have to make money at it for the longest time. They hae staying power... Palm Inc in contrast is minute is comparison, they can't afford to move as quickly or as carefree. It's just not possible.
My Palm handheld has served me incredibly well for the past 3 years. I actually can't think of anything else I want to use it for than I already am. And out of loyalty I will stick with the platform until it becomes real obvious that I REALLY NEED to switch and re-pay all the money spent on registered software. But I tell you one thing. it will NEVER be a switch to Microsoft! There are people out there that actually like this company and their way of doing business ????
This is not the FIRST one or LAST one
in the past and there are still many waiting for him in the future.
Exactly too little, too late
Okay! So mistakes were made. Where's the wireless!!
Thanks those those at Palminfocenter.com for keeping their PQA up-to-date and functional.
The Way of the Mac
Well, I use to own a Palm also, in fact the first I owned was a Palm Pilot Personal, what a great device, kept all your important info and it could be hotsynced to your computer. That was 1996, how has Palm introduced innovation since. Form factor (units got smaller), display resolution (take a look at a Palm Pilot Personal and a Palm V), speed (though I really don't think it was all that much faster, at least for what I use it for), the SD slot, and color. Is that all you would expect in a 5 year period? What about true wireless (let's all admit the Palm VII was pretty worthless, look how much they go for today). What about voice recording (yeah it may be worthless, but it does have some utility), what about a built in MP3 player?
Yes Palm has the software and the customer base, but do they really think they can keep it when other companies are introducing better products with more features? Look at the Sony Clie, (color, Jog Dial, built in MP3 player, memory stick, mpeg playback, and pretty decent form factor).
Palm should be paying attention, take the success of Blackberry. They could dominate that market if they would only react with good wireless units based on the Palm OS. Everyone talks about when wireless will take off, when it doesn't cost 45 dollars a month and when you don't pay by the kilobyte, isn't that obvious? Palm should be taking note.
Companies, like most everyone else get into if ain't broke, don't fix it routine. Yeah maybe this is a good idea when your product is selling, but in that same time they better be spending the dollars on R&D and be prepared to innovate when things start heading south. Palm is poised to do so, but every day we will see then lose market share when they continue to stagnate on their "simplicity" foundation. Simplicity is nice when you're the only guy in town, but add some sexiness and neat gadgets and see how long before your "simplicity" turns into a thing of the past.
I'll get off my soap box, but my point is simple, stagnate and die, innovate and lead.
RE: The Way of the Mac
Your note is going to be tougher to go against. Thankfully, there are a few cracks in the wall.
A quick note about the Mac: colors was just a stepping stone of profitability to support the release of MacOS X. The latest 10.1 release is getting raves from many magazines. This _innovation_ will save Apple's bacon. A pity they had to be brought near the brink of death to finally get it out. I hope it goes well from here.
Now, let's talk about Palm. Yes, they got the IBM mentality that they were invincible. When they squashed the original Microsoft CE devices, they thought the war was over. Unfortunately, Microsoft didn't sit still, and now Palm is still trying to hit the gas and get out of second gear.
But, all's goldies with oldies. While the geek market is starting to lean towards the pocketPCs, the "average Joe" is just now finding a use for what was available 3 years ago. Was the M105 a powerful, enhanced, expandable beast to feed our hunger for the "world in our hand?" No...but it was cheap, simple, and perfect for the average guy who wanted an organizer that could read the news (Avantgo) play tetris. There are many people just getting into the PDA market, and the Palm is much less intimidating step then the half-a-grand PocketPCs.
I don't want Palm to be more capable than a PocketPC. Microsoft has decided to engage the "laptop-replacement" market, and Palm should steer clear of it. Keep it small, affordable, and durable. More memory is always desired, but color-screens, mp3-players, wireless networking, and all other related items are for power-users, and should only be implemented if it can be done cheaply with a simple interface.
This is sort of why I'm a little worried about Handspring. They are the "in-between" market of simplicity and power. Walking on the middle-line of a road means you can get run over from either direction. Should they keep it cheap and simple and forge into the Palm market (but, if Palm dies, so does handspring). Or, should they try to further enhance the springboard technology, the Prism's color screen, and the Visorphone, and compete against the likes of Microsoft? Tough call.
Palm and Microsoft is in a nasty battle, and one can't help but recall the fall of Netscape, Word Perfect, and IBM (no, the Mac is not dead...it's actually growing). But, the Windows CE devices flared up...then fell. Palm may prove to the world again that less is more, and knock down Microsoft a second time. In a twisted sort of way, the failing economy is to Palm's advantage. People may be more inclined to purchase the cheaper model.
Of course, making fewer mistakes would certainly help! I hope he's learned from all of this.
-------
James Sorenson
RE: The Way of the Mac
Your note is going to be tougher to go against. Thankfully, there are a few cracks in the wall.
A quick note about the Mac: colors was just a stepping stone of profitability to support the release of MacOS X. The latest 10.1 release is getting raves from many magazines. This _innovation_ will save Apple's bacon. A pity they had to be brought near the brink of death to finally get it out. I hope it goes well from here.
Now, let's talk about Palm. Yes, they got the IBM mentality that they were invincible. When they squashed the original Microsoft CE devices, they thought the war was over. Unfortunately, Microsoft didn't sit still, and now Palm is still trying to hit the gas and get out of second gear.
But, all's goldies with oldies. While the geek market is starting to lean towards the pocketPCs, the "average Joe" is just now finding a use for what was available 3 years ago. Was the M105 a powerful, enhanced, expandable beast to feed our hunger for the "world in our hand?" No...but it was cheap, simple, and perfect for the average guy who wanted an organizer that could read the news (Avantgo) play tetris. There are many people just getting into the PDA market, and the Palm is much less intimidating step then the half-a-grand PocketPCs.
I don't want Palm to be more capable than a PocketPC. Microsoft has decided to engage the "laptop-replacement" market, and Palm should steer clear of it. Keep it small, affordable, and durable. More memory is always desired, but color-screens, mp3-players, wireless networking, and all other related items are for power-users, and should only be implemented if it can be done cheaply with a simple interface.
This is sort of why I'm a little worried about Handspring. They are the "in-between" market of simplicity and power. Walking on the middle-line of a road means you can get run over from either direction. Should they keep it cheap and simple and forge into the Palm market (but, if Palm dies, so does handspring). Or, should they try to further enhance the springboard technology, the Prism's color screen, and the Visorphone, and compete against the likes of Microsoft? Tough call.
Palm and Microsoft is in a nasty battle, and one can't help but recall the fall of Netscape, Word Perfect, and IBM (no, the Mac is not dead...it's actually growing). But, the Windows CE devices flared up...then fell. Palm may prove to the world again that less is more, and knock down Microsoft a second time. In a twisted sort of way, the failing economy is to Palm's advantage. People may be more inclined to purchase the cheaper model.
Of course, making fewer mistakes would certainly help! I hope he's learned from all of this.
-------
James Sorenson
RE: The Way of the Mac
-------
James Sorenson
RE: The Way of the Mac
They're fine..
I'll easily take my CLIE-760 over an m505, but the m505 is getting relatively old and supposedly an "m525" isn't far off.. Assuming most of the rumors are true, an m525/m125/m7xx lineup will be very, very competitive.
With Sony's new units and assuming Handspring gets off their asses, we'll have a very nice playing field that will easily rival the PPC2002's, especially to consumers. (And if a color/USB Handera comes out, that'll be icing on the cake.)
Of course, this is all speculative. If we have all the same models in 6 months, then I'll agree that Palm is dying. :(
just the facts
1) Why doesn't Palm innovate?
--1999, Palm V and Palm IIIx. Smallest form factor. Brighter screens.
--1999, Palm VII, wireless and internet enabled handheld which maintains a small form factor
--2000, Palm IIIc, FIRST color handheld
--2000, m100 line introduces handhelds at an amazingly cheap price
--2001, m105 provides SD cards at cheap price
--2001, m500 line provides color screens, SD cards, great battery life, and small form factor.
And these are only the devices actually produced by Palm. Palm devices in general now include the Kyocera phone, Samsung phone, the Sony Clie line, springboards, MMC cards, etc. etc. Where is the innovation indeed.
2) Why doesn't Palm have wireless? Why doesn't Palm have MP3? Why doesn't Palm have virtual grafitti? Why doesn't Palm have more RAM?
Palm actually does have wireless, the 2y.o. Palm VII. Or you can buy a new phone that incorporates the Palm OS. The Samsung looks pretty cool. (Why is it that no handy companies are so excited by the bloat-ware of Microsoft?) But the real question is why the U.S. wireless providers SUCK. Really, the system in Europe and Japan is much, much better than the U.S. No U.S. handheld has managed to really incorporate "wireless" because there is no "wireless" out there that isn't crappy. As for MP3, get a Clie. As for virtual grafitti, get a Handera or a Clie. I don't understand why anyone would get disgusted with Palm Inc. for NOT having features which other Palm OS devices do possess. That's like getting mad at Compaq for not having the same cases as Dell. As for RAM, well see the next point, but the main reason Palm doesn't have more RAM is that until very recently it hasn't NEEDED it unlike the IPAQ which actually requires huge amounts of RAM to run the buggy, slow Windows software. OTOH if you need RAM for storage, then buy an SD card. Simple.
3) "Sorry Palm but I'm switching to pocket PC." Or "I own a Palm device, but all the Microsoft press is making me nervous." Or, "The problem is that Palm is not keepin up with pocket PC." etc. etc.
This, I fear is Palm's biggest problem. The advertising juggernaut which is Microsoft / Compaq / Hewlett Packard / Toshiba is HUGE, with LOADS of cash and, at least the advertising arm of Microsoft, is BRILLIANT. They are engaged in very familiar practices (anyone remember the browser wars?). First get people looking over their shoulders. Flood discussion boards with trolls. Produce alot of vapor ware. This gets you free advertising so that no one can mention Palm without mentioning pocket PCs. Then produce a check list of features which are irrelevant to performance but which sound slick (clock speed, RAM, etc.). Force your competition (i.e. Palm OS devices) to react to this check list (i.e., get them on your playing field). Then leverage your existing monopoly to begin gaining market share. Maybe Palm devices suddenly don't synch so well with the latest edition of Windows. Maybe MSWord files get harder to convert. We've seen all of this before, and we are seeing it again.
Look, imagine that we could combine Palm, Handspring, and Handera into one company (leave out Sony for the time being, who has never been a very successful computer company). It would be squat compared with Microsoft et al. It is a testament to the higher quality of the Palm OS devices that they are even vaguely popular.
RE: just the facts
Many mistakes? That's an understatment!
RE: Many mistakes? That's an understatment!
If you really think that Pocket PCs (I, myself, dislike this term, which has been foisted upon us by the M$ marketing folks. It emplies Widows.)...Pocket PC HANDHELDS are better then sell your m505 on ebay and buy one. The quality of the product, after all, should determine your buying decisions...not the hype.
Palm OS handhelds are more innovative, faster, lighter, have a better battery life, etc. The Palm OS is more portable to handies, i.e., phones (I'd like to see M$ fit their OS on a portable phone, ha-ha). Oh, and why blame Palm for sticking with Dragonball chips? Isn't this Motorolla's fault? Palm is indeed moving to ARM chips now that they see how slow Motorolla is in brining out better chips.
Your comments, Mr. Troll, suggest that you are either an employee of M$ (or Compaq, or HP, or Toshiba) or that you are easily duped by hype.
RE: Many mistakes? That's an understatment!
I love Microsoft. I love Windows on my PC. I have almost every Microsoft product, I have microsoft software, hardware ...
But I use a Palm handheld, simply because it gives me what I need: speed, ease of use and power. The same thing that Windows brings to my desktop computer.
By the way if some ridiculous linux nerd will say I use Windows because I can't use Linux; I have used Linux I am a Computer Engineer. Linux and PPC can deliver but they are way to complex to be efficient for everyday task and there is not enough software.
RE: Many mistakes? That's an understatment!
Idiots. You people who posted replies addressed to TROLLS are nothing more than a bunch of ideological mongers no different from COMMUNISTS or RADICAL MUSLIMS. Basically, you can't fathom that people have different viewpoints and that your viewpoints on PALM FASCISM is the only correct viewpoint. Really, this viewpoint is only matched by the APPLE BIGOTS & STEVE JOBS APOLOGISTS.
Gimme a break. It's just a friggin PDA. I own both a Palm Vx and a Jornada 568. They're devices. Get a life. Get over it. If you people are that bullheaded by a device, I'm really afraid for you. If your life is that meaningless that you have to adamantly bash anyone who have different viewpoints, then you people lead really meaningless lives.
And oh...have a nice day.
RE: Many mistakes? That's an understatment!
I fail to see how your conservative sentiments are relevant on a board for Palm Handheld enthusiasts.
RE: Many mistakes? That's an understatment!
Stop offending people, you are the idiot. Please learn to respect everyones opinions, this forum is for free expression. And by the way if there is an extremist muslim or fanatic in this forum that's you.
Unoriginal Subjects
Anyhow, i think Palm knows what they need to do to keep the OS innovative and in competition. I also think that the big changes that need to be done will be in OS 5.
Plenty of the higher end multimedia capabilities just aren't possible on the current processors. OS 5 will be great for this. And considering how tight and smooth/fast the current Palm OS's run, an increase of speed (significant increase) in the CPU will make the new features just as fast -unlike trying to watch video on these 33Mhz CPU's....(let's be honest, EVERY video solution on palm is crap. under 20fps for pixelated mess is not watchable video in any shape or form).
I'm very impressed at how much Palm has gotten out of what was roginally just an organizer. I mean, you can do PLENTY with a Palm OS device. It's a real testiment to how great the developers out there are.
So you can complain and complain about Palm not putting in X Y or Z, but don't flip them off so quick. Big changes take time. And if we want a solid product that we've all been used to, we should be willing to encourage the development as it progresses.
(that said, i DO hope it comes soon in 2002. It would help them out planty).
Invasion of the Handie-snatchers!!!
Then one day, this dude I worked with showed up with a little gadget he had received as a birthday gift.
"Is that a Palm Pilot?"
"No, its a Handspring. Look, Tiger Woods Golf!" He showed me a slice on the monochrome screen. I didn't know Palm Pilots came with cartrige slots! I was very jealous inside, though I didn't show it.
He ranted on. "Dude! Its got 8 megabytes of memory and I can 'synchronize' with Outlook. There's like a billion games."
"Yeah, but you have to write everything by hand?"
"No, my girlfriend got me this..."
He then UNFOLDED A FRIGGIN' KEYBOARD ON MY DESK. Now this is nothing to us today, but in 1999, with no previous exposure, let me tell you how cool it was that he UNFOLDED A FRIGGIN' KEYBOARD ON MY DESK!
"I can use a version of Word on this," he said.
I thought it was amazing, but I also thought it was expensive. It was months before I decided I wanted a Palm Pilot Handspring (ah, the ignorance). The first I purchased was a 2mb Visor with a keyboard. I had no idea how addictive Palmgear.com could be to a newbie. In less than two days, I had filled the 2mb. I returned it and replaced it with something bigger: The IIIxe. It felt more sturdy in my hands than the Visors and... well... It was a Palm. It was the name I knew.
It was then that I realized what a total tech-geek I am. I'm like an alcoholic for PDAs. Nothing entirely satifies me. I get something new, love it for a month or two, and then start drooling over that which I don't already have. Five months after the IIIxe, I bought the IIIc because I was afterburning my IIIxe so much that the batteries were lasting less than a week at a time, and the IIIc was, and I believe still is, the cheapest rechargeable Palm-powered PDA out there. I loved that for a while, ran out of memory to feed my addiction with, then moved to the Handera 330 so I could keep all my existing junkie-toys, where I reside happily today.
The point: We are kinda geeky here at PIC, and that's way cool. The world needs us. But we aren't the majority. My girlfriend LOVES her m100... loves it. It's her datebook; that's all. Most people I know DO NOT have anything more than a Vx. No color, no phones, no virtual yadda-yadda. They love their units as-is.
We are unsatiable creatures. We cannot be satisfied. There will always be something on the other side of the fence, and we will always be croning our heads to see what it is. I gave up color for memory, and I'm still here.
Guys, it's just a PDA.
And they are all great.
RE: Invasion of the Handie-snatchers!!!
Thanks.
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Understatement of the year