Menu
Palm to close US retail stores

Palm to close US retail stores

Palm plans to close its retail stores in an effort to focus on fewer programmes and better compete, the company said last week.

All of Palm's eight branded retail stores, as well as its 26 stores within Airport Wireless shops, will close.

The move may stem from increased competition from Research In Motion's BlackBerry products. Prior to about a year ago, BlackBerry dominated the enterprise market and Palm was popular among prosumers, who typically buy devices in retail outlets, said Bill Hughes, an analyst at In-Stat. But since then, BlackBerry has grown more successful at selling its handhelds at retail, encroaching on Palm's traditional prosumer market, he said.

The stores didn't make much sense for Palm from the beginning, according to Hughes. "This doesn't really surprise me," he says. Usually, manufacturers open their own stores when their retail distribution strategy isn't working, he says. But Palm has reported a string of quarterly losses and may have decided to close the stores and boost its efforts to sell through other retail outlets as a way to cut costs.

Palm says the store closings come as the company continues to focus on core business initiatives, consolidating resources behind fewer programmes. For a similar reason, it cancelled its controversial smartphone companion product, the Foleo, that was scheduled for release in the middle of 2007.

Palm has struggled over the past couple of years as the smartphone market grows increasingly crowded, and as it tries to phase out its PDA (personal digital assistant) business. The company is building a new Linux-based operating system that is scheduled to be released at the end of this year, with commercial products hitting the market shortly after. The software, which many thought would hit the market at the end of last year, will compete with Google's Android Linux-based smartphone operating system. Phones based on Android are expected to ship starting in the second half of this year.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags GoogletreoPalm

Featured

Slideshows

The making of an MSSP: a blueprint for growth in NZ

The making of an MSSP: a blueprint for growth in NZ

Partners are actively building out security practices and services to match, yet remain challenged by a lack of guidance in the market. This exclusive Reseller News Roundtable - in association with Sophos - assessed the making of an MSSP, outlining the blueprint for growth and how partners can differentiate in New Zealand.

The making of an MSSP: a blueprint for growth in NZ
Reseller News Platinum Club celebrates leading partners in 2018

Reseller News Platinum Club celebrates leading partners in 2018

The leading players of the New Zealand channel came together to celebrate a year of achievement at the inaugural Reseller News Platinum Club lunch in Auckland. Following the Reseller News Innovation Awards, Platinum Club provides a platform to showcase the top performing partners and start-ups of the past 12 months, with more than ​​50 organisations in the spotlight.​​​

Reseller News Platinum Club celebrates leading partners in 2018
Meet the top performing HP partners in NZ

Meet the top performing HP partners in NZ

HP has honoured its leading partners in New Zealand during 2018, following 12 months of growth through the local channel. Unveiled during the fourth running of the ceremony in Auckland, the awards recognise and celebrate excellence, growth, consistency and engagement of standout Kiwi partners.

Meet the top performing HP partners in NZ
Show Comments