PalmSource Cuts 18% of Work Force

[Janak Parekh]

<div class='os_post_top_link'><a href='http://news.com.com/2100-1040-983805.html' target='_blank'>http://news.com.com/2100-1040-983805.html</a><br /><br /></div>One of the factors in the Palm OS's ability to survive is not only competition from Microsoft, but also PalmSource's ability to stay solvent.<br /><br />"PalmSource, the operating system subsidiary of handheld company Palm, cut 18 percent of its work force this week.<br /><br />The Sunnyvale, Calif.-based company laid off employees from all divisions within the company, according to Gabi Schindler, PalmSource's senior vice president of marketing. Schindler declined to comment on the specific number of employees let go.<br /><br />'We're subject to the same market conditions that other companies are experiencing...We had to bring our costs in line with revenue,' Schindler said. 'Where and when it is strategically important, we will hire new people.'"<br /><br />For what it's worth, the response from Schindler is pretty boilerplate. The fact of the matter remains that should MS stay committed to Pocket PC long-term, it has a much, much larger warchest to do so than PalmSource, and can ride out the current economic (and, in particular, handheld) slump much more easily.

[Jonathan1]

Here's the thing. While MS has a larger "warchest" as you term it. PalmSource is a VERY valuable resource. You wouldn't think it from their shares but it really is. If Palmsource goes under you can bet cold hard cash that some big name player *cough*Sony*cough* will pick them up before they bounce once.

In the hands of a company that is competent, of which the current crop of execs at Palm are blundering idiots who only know spin, Palm OS can and WOULD be able to compete head to head with MS. It’s the whole Phoenix thing going. The right leadership makes all the difference.

Actually if anything I REALLY want to see the Palm hardware side die a horrible, horrible death. As I have mentioned before the idiots at our company have standardized not only on Palm OS but Palm hardware as well. This is all of North American, not at liberty to say who and how many offices but its a lot. I would love to see the people who made this decision get caught with their pants around their ankles. In the words of Nelson from the SIMPSONS HA! HA! Wow I'm a vindictive little sucker. :wink:

[PlayAgain?]

It's a shame though that Microsoft and it's disciples don't think along the lines of "what can we provide to beat the competition?" as much as "how long will the competition survive?".

The bottom line is that Microsoft will win - not necessarily because it's product is better but rather, because Windows and Office sell well on desktops.

The Mobile bits of Microsoft are failing to pay for themselves and cannot stand on their own merits.

I think it would be a good move for Sony to take over Palm. I've never bought a Palm product, and as long as they look like 70's SciFi bobbins, I never will.

But I know that at the end of the day, when Palm goes bust, the fangirls will say that it's because their product was crap while conveniently ignoring that fact that if all Microsoft sold were mobile devices, they too would be in the very same boat.

But, there's hope for Palm. Look at Symbian. The number of Symbian devices went from near 0 to millions in a very short time indeed.

[David C]

Wow, I'm actually beginning to feel bad now. While I've always liked the Pocket PC platform, and wanted it to succeed, I've always value the competition that is keeping Microsoft at its edge as well. I'd be really worried if Microsoft some how killed Palm completely in the battle. With out a competition, would there be an incentive for Microsoft to improve?

[TawnerX]

I think the long term value of Palm Inc as competitor to push PDA progress is overblown.

So far all they can do is introduce popular handheld that work, and bring the price down. OS5.0 hasn't shown anything worth noting to drive progress. Palm is about sinlge product wave, not long term trend.

If there is any competition worth nurturing for the sake of PDA progress, it'll be Linux. Once the hardware advance slightly beyond current ARM and company open up their specification for Linux developer to write driver. It will be an interesting battle to watch in PDA. Because theoritically All of Linux software automatically will run on PDA. Even now Linux handheld has far more powerfull networking, scientific and developer environment than PPC, let alone Palm.

Linux has a lot of potential technology specially academic area, PPC has a lot of resource in corporate arena. Palm is just riding on past momentum, I don't see any particular strength beyond marketshare number.

[Bosco]

Palm is just riding on past momentum, I don't see any particular strength beyond marketshare number.

What's with people saying this? Blah blah past momentum blah blah dead dead Palm is dead blah blah Sony will takeover Palm blah blah NOT GOING TO HAPPEN! How can I be so sure of this? Well, it's because once the entire US market in general goes into recovery, handheld sales will be up and stand-alone PDA companies will again be able to survive with their head above water, maybe even shoulders. It's really a question of when and I'm guessing within the next few years. Somebody said if Microsoft didn't have all that backing, they wouldn't be able to survive either. That's absolutely correct. They aren't selling well enough at all to churn out enough money to manage a company off it. It's a miracle how Palm Inc is doing it and how they will continue to do it. Sony, if anyone, will buy out PALMSOURCE if they fail, which I think someone already mentioned, but if Palm Inc starts to go (won't happen), they won't be able to fall back on anything besides a big foam finger pointing back to Yankowski's reign of terror.

Now, Palm Inc continues to sell devices out the yinyang. It doesn't matter how many times you yell and say Palm Inc isn't innovative enough, the bottom line is that they're selling. Palm Inc knows how to squeeze money out of all of their products, and it doesn't matter what you think about it, it's about how much more revenue they can churn. For God's sake, they haven't even discontinued the m105 yet!!!

Whoever says that Palm Inc will die, etc etc is ignoring their status. Sure, their sales aren't great, but they are still the king in the PDA industry and they hold that oh-so-special mark, Palm Pilot. As long as they stick with PALM, it will take more than just direct sales and some low priced units to beat them out, which brings me to my next point. You CANNOT compare the PC market to the PDA market, as so many people have foolishly done in the past. This is the reason why I am one of the few people that believe Dell will not become supreme king in the PDA channel. I don't care how many servers they sell, direct doesn't work nearly as well as retail does in the PDA business. As for Palm only riding on past momentum, how do you explain the success of ALL of their current units, especially the Zire?

That's all for now. Peace.

[TawnerX]

Wow such a desperate cry, the situation with Palm is dire indeed.