A few months ago we were talking about Palm in the office. I was lamenting how much I loved my old Treo. Despite Palm’s inability to upgrade hardware and software at a pace acceptable to me there were many things I missed about my Treo.
At the time of our discussion they had just killed off the Foleo, an absolutely baffling product that had no use to anyone. We imagined a chalk line being drawn around PALM headquarters. They seemed like a company who were once leaders that could no longer compete. A product line that was weighed down with legacy and seemingly no hope in sight or in their pipeline.
Now Palm is going “all in” with the Palm Pre. Their new smartphone that looks amazing.
But here is the truth of the situation:
“There is nothing left, no goodwill, and very little patience on the Street. Palm has about $200 million in cash in the bank to fund the release and the massive ad campaign to support Pre. “
This is why they will succeed. Failure is not an option… There is no bailout, there is no TARP.
Palm will succeed by putting a product in market that is better than their heavy competition or they will cease to be in business. Some think that it is too little too late for Palm, competition from RIM and Apple is just too great. But I like an underdog especially one who refuses to die.
[Full disclosure: I own shares of PALM. I bought 1000 shares at $6.50]