Through The Fly's Eyes: Wireless Data

from Theflyonthewall.com
















Are Q and BlackJack beating Treo?

Palm (PALM) warned last night that it would have a big revenue and earnings miss for the quarter. Palm expects to report revenue of $390 million to $395 million, down from its previous forecast of $430 million to $450 million.

During the summer, Motorola (MOT) was beaming about the prospects of Q, its wireless data device. Motorola said it was going to ramp production of Q going into the holiday season. Verizon (VZ) appears to be the force behind Q while Cingular has been pounding the airwaves with BlackJack from Samsung. Palm blamed the miss on the new Treo 750 smartphone which supposedly had certification problems in the US market.

Motorola has been having great success the last few years increasing its presence with US wireless carriers. Why should Verizon and Cingular carry Treo when they can get a whole host of products from suppliers like Motorola and Samsung?

Palm investors better do their homework and make sure this was a temporary miss due to the certification process as Palm management says and not something more.