Palm Files for Clarifications and Corrections on McNamee Interviews | webOS Nation
 
 

Palm Files for Clarifications and Corrections on McNamee Interviews 6

by Jennifer Chappell Tue, 10 Mar 2009 1:31 pm EDT

We learned via Palm Infocenter that in an unusual SEC filing, Palm has composed a free writing prospectus on the subject of Roger McNamee's recent Bloomberg March 5th TV Interview and following article. Both the interview and the article discussed Palm and the Palm Pre smartphone.

The interview and article published by Bloomberg were not prepared by or reviewed by Palm prior to their broadcasting and publication, and Bloomberg isn't affiliated with either Palm or Elevation, nor did Palm or Elevation make any payment or give any consideration to Bloomberg in connection with the broadcast of the interview. So Palm wanted to clarify some statements in the interview or article that were not made directly by Mr. McNamee, which represent Bloomberg's or others' opinions, and are not endorsed by Palm or Elevation.

Below are the Clarifications and Corrections

For purposes of clarification, it should be noted that:

  1. Although market share estimates such as those in the fourth paragraph of the transcript that “Blackberry’s global market share is about 1.2%, and Apple’s is about 0.9 of 1%” are, by their nature, approximations, one third party industry analyst report indicates that in 2007 and 2008, Blackberry’s share of worldwide mobile phone shipments was 1.1% and 1.9%, respectively, and Apple’s was 0.3% and 1.2%, respectively.
  2. With respect to the statement in the fourth paragraph of the transcript that “in the US, smart phones went from 10% to 20% just in the last year,” one third party industry analyst report indicates that smart phones made up 11.1% of U.S. mobile phone shipments in 2007 and 19.5% in 2008.
  3. With respect to the statement in the fourth paragraph of the transcript that smartphones are anticipated to increase their share of the U.S. mobile phone market to “50% within 5 years,” one third party industry analyst report estimates smartphone share of the U.S. mobile phone market will reach 42.0% in 2012.
  4. With respect to the statement in the fourth paragraph of the transcript that “this is a huge market: 1.2 billion units sold per year,” one third party industry analyst report estimates worldwide mobile phone shipments exceeded 1.2 billion in 2008.
  5. With respect to the statements in the tenth paragraph of the transcript that the Palm Pre is “going to be a million times – well, not a million times – several times faster” than Apple, Inc.’s iPhone products and is “going to run rings around them on the web,” the Palm Pre is still under development and it is premature to state the speed at which the device accesses the web or the relative speed of the Palm Pre compared to the smartphone products of competitors.
  6. With respect to the statements in the twelfth paragraph of the transcript that “there are aspects of the Pre that are unlike any phone you’ve every seen before,” “the Pre is the first one that is the next generation” and “the result is it does a lot of things the others guys don’t do,” the Palm Pre is designed to be the first phone based on the Palm webOS™ platform and as a result will have different operating characteristics and features than other phones, however; the Palm Pre is still under development and it is premature to compare its full functionality with that of other phones.
  7. The statements in the fourteenth paragraph of the transcript regarding the relative development and stability of Sprint’s, Verizon’s and AT&T’s 3G networks are generalizations regarding wireless cellular network performance that may or may not be true depending on a variety of factors specific to geographic regions .
  8. The statement in the second paragraph of the article that “not one” person who bought an Apple, Inc. iPhone on the first shipment date “will still be using an iPhone a month” after the two-year anniversary of that day is an exaggerated prediction of consumer behavior pattern and is withdrawn.
  9. With respect to the statements in the second to last paragraph of the article that “the underlying technology for Research In Motion Ltd.’s BlackBerry is about 13 years old, while the technology behind the iPhone goes back almost nine years,” estimating one specific age for the many technology components underlying any mobile phone is inherently imprecise and these statements are withdrawn.
  10. With respect to the implications in the second to last and last paragraphs of the article that Palm’s new operating system will give it an edge over competitors that “are going to run out of gas way before” Palm, estimations of the relative useful lifespan of smartphone operating systems are conjecture, unverifiable at this time, and age is not necessarily predictive of their relative long-term success.

You can read the full SEC document here.

What do you think about these clarifications and corrections?  Did Roger say too much?  Is he still your Hero? He's still mine!  McNamee's statements about the Pre being several times faster than the iPhone 3G certainly stirred up some interesting conversations. ;-)

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6 Comments

Is this guy just out-of-control, but he's too much of a big-wig for Palm (or E.P.) to approach him, directly?

Despite all of the faith the Pre and WebOS have inspired in so many of us, if "we" notice more and more signs that Palm doesn't have its act together, that faith will evaporate and Palm will find itself in ... troublesome territory.

If their default spokesperson and a chief investor can't be trusted to go on their air and properly represent the product and the organization, that's a bad sign. Of course, it's possible that there were editing issues, but I get the impression that the larger factor was what was left in the broadcast, not what ended up on the cutting-room floor.

Palm, please please please don't let this be a sign of things to come.

Thoughts? I said last week he was an embarrassing "ambassador". If his statements have to be followed by two pages of disclaimers and corrections, he's got as little credibility as a $99 auto lease and it's 20 seconds of hushed fast talk to keep it legal.

Lets bring a little class and credibility to the publicity and promotion. It's going to be a wonderful product, don't turn this into a self destructive firefight like the democrats nearly did in the primary.

While the SEC has their own rules that must be satisfied, this whole thing can be explained quite easily: an enthusiastic nerd rhapsodizing on his new geek-toy. I think most of us here can sympathize.

You can "sympathize" with trying to manipulate stock markets with falsehoods, on a news outlet devoted to the financial markets and business news? Interesting.

He is a major stock holder trying to pump his stock value with patently false claims that affect other stockholders.

Oh, yes, my bad. Next time they should ask Jim Cramer for his opinion.

Honestly, I don't get why Palm WOULDN'T know the things that he's saying - like how fast the device will transfer data, etc. They've got working models and we're halfway to their deadline. Why the heck is it still a guessing game?

They're acting like they're afraid to rouse the beast. So, it's not that I'm so sure that McNamee is sharing falsehoods so much as I wonder why the company and its representative aren't looking at the same playbook.