Palm Shares Drop Amidst Falling Marketshare

Palm Inc, the company behind the Pre and Pixi devices, has warned that its smartphone sales for the year are likely to fall short of the projected target owing to the fact that its smartphones have failed to pick up momentum due to severe competition from Blackberrys and iPhones.

According to the warning issued by the company, webOS, its new smartphone OS which was introduced in 2009, has failed to garner a substantial share in the smartphone market, as a result of which the predicted targets will not be met this year.

This news resulted in a sharp 17 percent drop in Palm shares on Wall Street and has left industry watchers wondering if Palm would survive the year or not.

Palm chairman and chief executive Jon Rubenstein, expressing his view point on the matter, said in a statement that “Palm webOS is recognized as a groundbreaking platform that enables one of the best smartphone experiences available today. However, driving broad consumer adoption of Palm products is taking longer than we anticipated.”

Palm, the company which pioneered the smartphone market with its Pilot device, has been losing substantial amounts of share in the smartphone market, as consumers are now being drawn to devices offered by Apple, RIM and Google.