Looks like things may be getting out of hand at Palm
Palm Inc. bet its survival on a pair of new smart phones. Now, that wager is unraveling, and the company is partly blaming one of its wireless partners.
The struggling handset maker said Thursday its flagship Pre and Pixi devices, which were launched last year, aren't selling as well as it hoped and warned revenue for the year ending in May will be "well below" its forecasts.
Palm's shares plunged 19% to $6.53 on the disclosure, which renewed questions as to whether the company can compete in a market it helped pioneer.