Leapfrog Competition in the Smartphone Industry

SmartphoneMarketShareGrasphic.gif

Source of graphic: online version of the NYT article quoted and cited below.

(p. C1) In recent years Palm lost its way. Its share of the smartphone market has been halved to about 16.9 percent over the last two years. First, Research in Motion found the sweet spot of business users with its BlackBerry. More recently, Apple grabbed consumers’ fancy with the iPhone.

Palm has tried to innovate beyond the five-year-old Treo with little effect. It announced with great fanfare last year that it would build the Foleo, a cross between a smartphone and notebook computer, only to cancel the project three months later. While cellphone makers like Samsung, LG and R.I.M. brought out products to compete with the iPhone, Palm has told Treo loyalists and investors to be patient. They will need to be. Palm’s stock price is down 90 percent since its high in March 2000.
Mr. Rubinstein, the executive chairman, said he is convinced he can bring Palm back. “Everyone is trying to make an iPhone killer,” he said. “We are trying to make a killer Palm product.”

For the full story, see:
LAURA M. HOLSON. “Palm, Once a Leader, Seeks Path in Smartphone Jungle.” The New York Times (Weds., August 20, 2008): C1 & C5.

ColliganRubensteinPalmExecs.jpg “Ed Colligan, left, Palm’s chief executive, and Jon Rubinstein, the executive chairman, who was hired to revive the company.” Source of caption and photo: online version of the NYT article quoted and cited above.

One thought on “Leapfrog Competition in the Smartphone Industry”

  1. I have serious doubt Palm can come back.
    The biggest issue i think is cultural within Palm.
    Although i am not sure why, it appears that Palm has been unable to innovate outside of what it created almost 10 years ago.
    Besides adding a phone, Today’s Palms are much the same as the decade old ones.
    Palm users have often been told to wait, something is coming that will be awesome! But the day never comes.
    It reminds me a lot of where apple was pre-Jobs return. They had a lead and a healthy market that they allowed to slowly be chipped away by competitors.
    At this time the best thing Palm can do is close up shop and give everyone their money back.

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