Palm Resumes Manufacturing Activities | webOS Nation
 
 

Palm Resumes Manufacturing Activities 30

by Robert Werlinger Wed, 03 Mar 2010 3:30 pm EST

Rumors surfaced (and were later confirmed and subsequently put into perspective) last month that Palm had suspended its manufacturing activates in China. The reason for that pause in production, Palm said in an official statement, was due to the Chinese New Year. It’s not unusual, as it turns out, for manufacturing companies in China to shut down for up to a month during the annual holiday, though some are convinced that there was a little more going on here than a business-as-usual production pause.

Regardless, it now appears that Palm’s manufacturing activities are back on track. CNBC’s Jim Goldman reports that production activities are back to normal. Palm confirmed to PreCentral that "manufacturing ramped back up at the end of February," noting that they "ramped up manufacturing prior to February in anticipation of Chinese New Year, then suspended it until late last month." As John Paczkowski notes at All Things D, the ramp up purportedly happened on February 22nd, "ironically, [...] right before" Palm released their updated guidance about poor sales.

In any case, the company's manufacturing phones again - huzzah!

Thanks to everyone that sent this in!

30 Comments

Now they can start cranking out those C40s.

Isn't there a unicorn shortage in China right now? I wonder how (or if) that will affect the release schedule...

Unfortunately, palm pre plus, killed palm pre sales. While in itself it did not sell much due to advertising. When Palm CEO announces palm pre 2, it will kill palm pre plus sales (what ever small amount is there). Either they need to realease palm pre 2 on all palm phone networks, or take the worse road of stopping palm pre hardware upgrades in the middle of the year. I wonder the reason why they release it only on one network is that the network, help them with advertising. But looking at the commercials, they have only hurt palm.

here's to waiting for the Pre 2! Can't wait!

My thoughts exactly!! I'm already starting to save up for the new Palm.

yup or they were fixing build problems maybe? We can be hopeful.

yup or they were fixing build problems maybe?

BUILD QUALITY (TM)! They finally listened to me...

I just hope my Pre will last til that mysterious C40 hits. My slider is acting kinda funny so I'm being extra careful not to put too much strain on it. I have both insurances on my phone but I don't wanna go through that hassle...since this is my 2nd Pre.

Glad to hear Palm's manufacturing plant is up and running again =)

...as long as the C40 has a vertical sliding keyboard & specs that rival the NexusOne (or better) - I'm on board for sure!

ps. Palm stocks are slowly on the rise...currently @ $6.24 - up 1.63%. After GDC I'm sure it will be back at the $10 mark! Yes, I have faith in Palm!

I would really like to see Palm stabilize.

It's been a long and rocky 8 months, with people talking about (or implying) the company's implosion every other week. Not the way people talk about an organization that is succeeding in its goals.

My personal perspective is that the opportunity to EXPLODE was very real and lost due to marketing and Sprint (build quality could be better, but has been blown way out of proportion). Despite this, the branch of profitability is still within reach.

Do we (Members) know anyone at that plant? Can we get the inside on the C40? Maybe just a picture. We won't tell anyone. Really we won't. :)

Maybe we can get one of those police sketch artists to talk to them.

so how long were the factories on hold? Some stories make it seem like ages.... Was it really only 10 days or so?

This really is typical of Chinese factories. All of the factories I deal with were out from between 2/5 - 2/11 and returned between 2/18 - 2/26.

flip phone please..

It kinda made sense because all pres for sprint were pulled of online sources such as wire fly BB and radio-shack, but now they are back. I thought reason for pull would be new Webos device for sprint but i guess it was just Chinese holiday :(

LOL I dodnt know how I missed the letter to palm IR accusing them of lying. Have just read it. Its really easy to spread FUD these days.

Other sites see something darker in this. Sprint and Verizon have stopped orders on new phones so Palm can make all the phones they want but they are piling up in the warehouses.

http://preview.tinyurl.com/yax37mz


I love Palm but things are not well in Palm-land.

No they dodnt.

That article is from February (before knowing palm resumed production) and cites an analyst that implied weeks ago that palm was stopping all production and for a whole month (because only that analyst would know for how many time...) because he says that he knows that all carriers were dumping the phone. Pretty fishy assessment right now knowing that production has restarted already.

I truly believe a lot of things commented in here just were raised because of the doom and gloom of the power of Fud that happened some weeks ago. Not that people dont love it.

But you bet traders love it. Speculation works well with FUD.

did sprint and verizon resume buying? Or them stopping for anything more than this holliday a rumor too?

You guys have to think more long term. They still have lots of phones to make. At&t. Then I think telus is getting a phone soon and after that I'm sure rogers will get a gsm version. 100,000's of phones still to make not including new hardware.

And you forgot unlocked units. ;)

Guys, in December, Palm guided analysts to expect revenue in the February quarter of ~$430 million. Now, it looks like revenue will be $300-320 million. That's about 30% lower than expected. That means that unit sales must be about 30% lower than expected (could vary depending on ASP erosion).

Ergo, Palm will likely make about 30% fewer phones this/ next quarter than the originally anticipated. Shutdown or no shutdown, Palm's sales are much lower than they expected in December. On February 11 they knew all this, yet they put out a press release which completely avoided the issue of the massive sales shortfall. Not coincidentally, Palm shares are down 50% in the last 6 weeks.

I know this is a Palm Pre site, and I'm a big fan too. It's the best phone on the market, and I'm stunned that they aren't selling more. You'd have to pay me to use a Droid. But that doesn't change the fact that Palm's sales were terrible last quarter, and they were intentionally deceptive about it. That's why analysts and investors are furious, and why the stock is down about 70% from just 6 months ago.

Dude I know you're upset but you have to put the blame for your loss with the right party - you!

Palm were asked a question about why production was being halted and their PR people answered that question (IMO) directly and truthfully.

YOU read more into their statement than what the question asked or what the answer addressed.

Not answering a question that wasn't asked IS NOT intentionally misleading anywhere except your head.

HP shifted their manufacturing to China and told us late last year that lead times will be increasing from 2 weeks to 3 weeks. In January, they also had informed us that there would be supply issues in February because of the Chinese holidays. Not surprised at the announcement made by Palm.

when that Pre 2/C40 comes out they better make a big hype like google and apple are experts in doing so

I worked for a company with manufacturing around the world for many years.
Our plant in China closed for Chinese New Year. Our plant in Malaysia closed for Ramadan. Our plant in Germany closed for the month of August.

During that down time some maintenance and cleaning went on as well as service parts, but no new orders came out of those factories for 3 - 4 weeks.

The REAL PROBLEM: Too many blogs, too many analysts, too many 24 hour news channels and they all need to fill their space and time and all want to act like they know something.
They all throw shit against the wall and if they are only correct 25% of the time, oh well.

I'm so happy with my Palm Pre and imagine I'd be even happier with a Plus. I see no reason for Palm to release a new phone until the fourth quarter.