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What Happened To Palm?
Ian Lamont writes "Palm's fourth quarter results came out a few days ago, and they were not pretty: Palm reported losses of 40 cents per share, for a quarterly loss of $43.4 million. It's the fourth straight quarter of losses, and it's clear that the company is not faring well in the rapidly evolving smartphone market. The Treo line is lagging after seven years, and while the Centro has done well, it's not well enough to compete with the likes of the iPhone 3G and RIM's surging BlackBerry line. New competition is on the horizon, with developers and manufacturers working on the Google Android platform and the recent news that Symbian is being open-sourced. What happened to Palm? What can the company do to effectively compete in the mobile market, and turn its fortunes around?"
I bought my Palm T|X, direct from Palm, within 24 hours of when they first became available. I ordered it direct so that Palm would get all the margin (profit) from the order. I do this when I am trying to support a company. Keep that in mind as you read the rest of this. They got more money from my orders than they would have if I had bought from, say, buy.com.
I ordered it overnight on Wednesday afternoon; they sat on the order until Friday, and so I received it Monday, basically five days after I had ordered it instead of one. Annoying, but it was new, they were probably overwhelmed with orders, etc., so I just grumbled a bit. The TX itself, well, it was fantastic. A little thing here or there wasn't perfect, but overall, this was the PDA I'd been waiting for. WiFi, Bluetooth, beautiful display, music and video playback, used almost all my software from my long in the tooth M505 Palm... the TX is fantastic. Really.
Considering that I was so happy with the T|X, I decided to get one for my sweetheart as well (she's also a long-time Palm/PDA user.) So, I ordered it on October 18th. We received it on October 19th. Much better. Unfortunately, this is where the happy tone of the story fades out.
Her TX would refuse to connect to any WiFi node without taking about ten tries. Then it would connect. Once connected, it was fine. But connecting could literally take five minutes of poking and prodding it. This was clearly no good (heck, PDAs are supposed to be convenient, aren't they?) So I called Palm. They kept me on the phone for about 40 minutes (I timed it. Total cost to me, $46.60 via AT&T) I spoke to Cody in support. In 40 minutes, he verified, apparently by following a support script, what I had clearly described to him in the first 30 seconds: This T|X was not connecting properly. Yes, I kept my temper and stayed polite. I know this game.
So he tells me, now I have to call the Palm store. So I do - toll free. I tell them what Cody told me, and I give them the service request number he supplied for my issue. They take it, tell me it will be 24-48 hours and then they will issue (by email) an RMA. This new fellow also explains that the procedure continues such that if they accept the RMA (verify the problem on receipt of the unit) then Palm will refund to my card.
I object: I ask, "Why refund? I want it replaced -- this is a gift!" They say there is no other option, and this is to "protect them from fraud." I ask them how, exactly, giving me my $300 back protects them more than giving me a working T|X... but this only angers the person on the phone, who tells me he isn't going to explain company policy to me. Imagine that. So I thank him for his time (no, really, I did, and I remain polite as well) and I hang up.
So, 48 hours pass, no RMA email. (Definitely -- I kept every email while waiting for the RMA, so no spam filtering, nothing. Man, was that annoying!) So I call them again. This guy tells me that it takes 2-5 days to issue an RMA and the previous person "didn't know what they were talking about." Uh-huh.
So I wait. Five days pass. No RMA. So I call them again. It's October 24th now. They say they'll send it out after 5 pm, specifically telling me these emails are batched all at once. 5pm rolls around... no RMA. 9pm... midnight...
So the next morning, I call them again, only this time I call technical support back at the toll number. (Total time, 20 minutes, Total cost to me, $23.30 via AT&T -- we're now at $69.00 expended on toll calls to Palm support.) We're still sitting on this busted T|X, and no RMA. I'm not happy at all. My sweetheart is dissapointed, to say the least. But I remained polite. The fellow on the phone (Chris, employee number 72485) allowed as to how he could escalate the issue, and fax me the RMA. He did, and we got it, wonder of wonders, and so now we have this RMA. It's a UPS ground return to Palm. Gritting my teeth, I hand it off to UPS and wait.
On November 3rd, I receive an email(!) from Palm saying that they
I've fallen off your lawn, and I can't get up.
Their hardware is solid. They just need to release an OS that is more capable than Windows 3.1.
Shipping an obsolete OS is what killed Palm. I stopped caring about them in 2005 when I realized that they were never going to ship any hardware with Palm OS 6. I don't know whether Palm OS 6 would have generated more success than Palm OS 5, but lo and behold, it's 2008, and they're still shipping an OS that lacks multitasking support and dates back to 2002. It's no surprise, then, that they are failing in an industry that is rife with competition from more modern software.
Make a phone that is aimed at business users.
remember blackberry? the old one? the one that ONLY did email?
That little device with its tiny niche' market rocketed RIM to the company that they currently are. Unfortunately RIM has completely lost sight of what used to make them so incredible. The market needs a new paradigm for business phones. there used to be nextel, and the blackberry 7520 (which i said they could have when they pried it from my cold, dead fingers) but sprint is basically flusing nextel down the toilets. they're hoping to phase out the network and poach the users onto sprint.
This is all another story...
The point is that there is definetely a group of consumers out there who don't WANT a phone with an MP3 player, a camera, lots and lots of bright, shiny surfaces, tiny buttons, etc. etc. we don't want phones that we designed for the 15-20 female market. We don't.
Lets look at something like the blackberry 7520 (the phone that i had up until yesterday) to the blackberry curve (which i have now had for about 24 hours).
The 7520 (which was an astounding success, btw) was big. really big. But we LIKED that about it. It was rugged, I would routinely chuck it across the office to demonstrate to the non-believers why it was so amazing. Its size also allowed it to have BIG keys...ones that you could type on. The screen was recessed, it NEVER got scratched, ever.
This is the type of thing that business users want....functionality.
Now lets look at the curve:
the buttons are f*cking tiny. You can't type with your thumbs, you have to use your fingernails. I can only assume that this is because the phone was designed for 8 year old girls. The dropped the scroll wheel on the side that made the old blackberries have such a (in my mind) LEGENDARY interface. Honestly that was one of the best interfaces i have EVER used. They dropped it for a stupid trackball that, while pretty, is all but useless unless you use two hands to operate the phone.
Okay...rant rant rant rant...i hate the new blackberry, but this is my point:
A market (that used to be dominated by RIM) has been abandoned. there is a sizable gap that needs to be filled, and this is Palm's opportunity to start turning a profit again.
If you dont' belive me about the 7520, ask anybody that owned one. Most of the people that did still keep it (with the service turned off if they have to) as an organizer. It was just THAT good, and there currently is nothing on the market that offers the same level of functionality.
NewslilySocial News. No lolcats allowed.
Palm suffers from the same fatal illness that has killed so many once-promising companies - totally inept management.
From their board minutes: "Let's make a Linux OS! No, wait, let's buy BeOS and use that! Great, it works, now let's not ship any products that run it! Now let's announce another Linux OS! Now let's announce an UMPC with a different, incompatible Linux OS than the first one - I mean, second one. Now on shipping day, let's cancel the UMPC and "commit" to the first Linux OS! Let's write an emulator that runs on another company's tablet, and give it away for free - but not ship a product of our own that runs it! And in the meantime, to keep our customers entertained, let's keep selling the Palm name to ourselves over and over again!"
Didn't these guys used to run Atari?
Want to make a chat application? Have an ssh session running in the background? Have the wifi card work as a wireless router with an internet connection through the cellphone service? Nope, sorry. The hardware can do it, but it's not part of Steve Job's vision.
You clearly did not watch the Keynote. They ridiculed this idea for mobile computing. Backround apps are the death of your battery. Do you really want to be dicking with task managers on a mobile device to find out what's using up your resources? And then there's apps that want persistent connections. Apple finessed that by giving away push notification server available to all developers.
In the future your persistent connection (e.g the ssh connection) will be running on a server not on the iphone. The display might be on the iphone but the ssh session you are monitoring won't be on the iphone. You can stop and start this display app, just like it were a VNC connection or a unix "Screen" connection without affecting the ssh operation.
Yes they have chat too. Yes Jobs said they will allow wifi phone service.
You really ought to watch the keynote since you are quite mistaken in your information.
Some drink at the fountain of knowledge. Others just gargle.
Palm is the new Amiga. They both had great devices that were ahead or the best of their era, but then decided to sit on their butts and stop innovating.
That's what happened.
This thread is peculiar timing for me, as i just spent the last few days resurrecting my Visor Prism for a Head-to-Head with my Dell Axim x51v and my AT&T Tilt...
The long and short of the comparsion? Palm never confronted Wince and its Descendants...
My early Palm's, the III's and the V's, were SO MUCH BETTER THAN THE EARLY WINCE PDA'S...
Good screens, GREAT battery life, and once you got the hang of Graffiti...you could fly on
entry. The Wince recognizer STILL isn't quite as good as the early Palm.
The Palms were soooo much better that Palm had the market essentially all to itself. For the FIRST FEW YEARS.
But then, Palm failed to grow, Palm failed to innovate (How old is Garnet?)... ....and each generation of Windows PDA got slowly and slightly better.
So, i remember attending the MS PDC in Denver ('97) and spending over 8 (F******) hours, working on my Compaq Companion (rebranded Casio Cassiopeia), getting the modem and Pocket Outlook and Pocket Explorer working over a 9600 baud connection. If the "windows" in my 16th story hotel room had opened, the Companion would have taken a Unscheduled Flight.
OTOH, my x51v (with a Stowaway BT Folding KB) has around 90% the ESSENTIAL functionality of my current laptops, and the x51v is a 3-year old PDA.
YES, the battery life on the Axim sucks, Yes, the Windows Mobile 5 Pocket apps are still a little underpowered and slightly flaky.
However, in raw functionality, my TX has less power than my x51v, Garnet is flakier than WM5, and i have to go to a bunch of 3rd party apps to get equivalent functionality with the Axim.
The TX's battery life is not all that much better, and the display screen isn't half as good.
ON THE BLACKBERRY SIDE; email on the Treo 700, though way better then my Treo 180, is still a relative PIA, compared to the Idiot Simple usage of a Blackberry.
And though i vastly prefer my Curve2 to my old Pearl, both of them had equivalent basic functionality to the Treo 700 in line-of-business apps, such as contacts and appointments.
Internet access on the BB is just a little behind the best of the 3G/4G phones. Display is also slightly-to-moderately behind, but has been catching up.
So, Palm got beat by cellphones on voice and Internet connectivity. Palm got beat by Wince on applications deployment and display. Palm got slaughtered by RIM on email functionality. Palm (along with everyone else) GOT MASS MURDERED BY Apple on multimedia delivery, which will only get worse with the 3G iPhone.
And both LG and Samsung, gigantic industrial conglomerates with HUGE MONEY, are lining up to play whack-a-mole with the iPhone. They may not succeed, but they WILL deliver many more powerful cellular devices to further eclipse the Palm line.
I STILL LOVE MY PRISM, but it's SOOO Olde Skul...
Palm SHOULD HAVE become the "iPhone", but they got fat and lazy with a dedicated user base.
Then once they fell behing they didn't have the: talent, vision or resources to catch up.
Palm -- "The PDA That Time Forgot"
Ten quid, she's so easy to blind. And not a word is spoken...
Every mistake that the pundits wanted Apple to make, Palm tried.
They licensed out their OS. Then, because the licensees were complaining about Palm's unfair advantage, they split into separate hardware and software companies. They even bought Be, which everyone said Apple should have done instead of buying NeXT.
So what happened?
Well, the software side (PalmSource) came out with a fancy new OS based on the BeOS stuff they bought. And...the licensees all said "We'll get to it."
So PalmSource said, "Oh, and the 6.1 version will be even better!" So the licensees (including PalmOne, the hardware side) said, "Great! Tell us when it's ready."
So PalmSource panicked and said, "...um, great! Um...hey...we'll make our next OS based on Linux!" And the licensees said, "Oh, okay, we'll wait for that one then."
And so, without planning to, they committed the one fatal error when you're up against Microsoft - they stood still. Microsoft can't catch a moving target, but stand still and they'll run you over. The PDA market dried up and all the licensees bailed. PalmSource got sold off to a Linux company. PalmOne decided to make a Linux OS of their own, and it'll be ready Real Soon Now.
was in assuming that ordering direct from Palm was better from their point of view. It isn't. Manufacturers don't specialize in logistics, distribution or warehousing, all of which are complex problem spaces that require significant skill to execute correctly. In fact, many manufacturers are so inefficient in these areas that it actually costs them more to sell you a unit than for you to buy it through distribution, margins and all. It also costs them far more to attempt to diagnose and support a problem than to accept a large batch of returns from a major distributor.
Just buy the thing locally from a retailer with a no-questions-asked return policy, and if there's anything wrong with it that you think might be a hardware defect, return it and try another one. This would have saved you $100 in phone calls (though why the hell are you paying over a dollar a minute for long distance?) and would have saved Palm several hundred dollars in support costs.
-Graham