Palm stock takes a hit due to shortage of Pre in the market

Palm stock takes a hit due to shortage of Pre in the market

Palm stock struggled on the stock market as reports of shortage of Pre in the market did not help the company’s cause.

Reports also claim that the launch of Pre was not as massive as expected.

Palm Pre was launched 3 days ago as the company aims to become a major player in the US smartphone market which is now largely dominated by Apple iPhone.

Sprint is the sole provider of Pre in the US market. Sprint itself has reported that the launch of Pre was a major success for them as a service provider.

Sprint also said that they are restocking Pre at their stores as soon as Palm can provide them with the units.

Market analyst Lawrence Harris had this to say on the launch of Pre: “We now estimate that Palm shipped 50,000 Pre units in May, compared with our prior estimate of 100,000. Our experience suggests that ramping up production of the Pre could take some time.”

Apple has just announced the latest version of iPhone named Apple iPhone 3G S. This is also not going to help out Palm.