Palm shares drop following its warning of fewer sales

www.WirelessFederation.com/news 13% drop in the shares has been witnessed by Palm after it was warned by the US smartphone maker that its fiscal third-quarter and full-year revenues would be below forecasts due to sluggish handset sales.

A serious blow for Palm’s management has been reflected by the sales shortfall which has based the struggling company’s turnround strategy on the success of Palm’s new WebOS operating system and the Palm Pre and Palm Pixi smartphones that run on it.

Palm Pre was being launched by the company a year ago in a bid to catch up with rivals including Research in Motion’s BlackBerry family of smartphones, Google Android-based devices and the Apple iPhone.

The company has had difficulty persuading network operators and customers to embrace its new smartphones despite of the praises it received for its new operating system.