Palm issues profit warning

Handset maker Palm had to issue a profit warning today, saying real life will not live up to previous hopes and expectations. Revenues for the third quarter of fiscal year 2010 are presumed to be somewhere between $285 million and $310 million. Palm also expects revenues “to be well below its previously forecasted range of $1.6 billion to $1.8 billion.” Which won’t make investors very happy.

Palm says punters haven’t been totally blitzed by its new, WebOS-based handsets. Network operators have ordered less Palm Pres and Pixies than the company had hoped for. CEO Jon Rubinstein fretted that everyone was oh-so totally committed to Palm and working on wondrous ways to sell more and more Palmsets. Shares dropped 18.79 percent in early trading on the NASDAQ.

Perhaps Palm should simply build handsets which don’t go bust after a few hours to a few weeks of use. Message boards on the web are full of anecdotes concerning malfunctions. This author’s former room mate saw his Pre’s screen go bust just from using it. Both 02 Germany and later on Palm said the handset wouldn’t be replaced because it was damaged by external factors. Friends and family are thus steering well clear of it.