Palm announces after the bell Monday a revenue and earnings shortfall and the delay of its new, flagship Treo 750. As soon as the news hit the wires, I scrambled to our set in Palo Alto. Trying to get some information, scrambling for the details. My producer Michelle Eprem found analyst Pablo Perez-Fernandez of G-Square in Geneva of all places. He and I talked during the commercial break, and then I was on! It was an adrenaline rush, as it always is, with breaking news. Got it out, got it right, and then I was done.
We followed the story Tuesday because of news overnight from Nokia, issuing its own revenue and profit margin warning. Yikes! Two major players in wireless with warnings kind of makes you wonder: is the hottest sector in tech cruising for a slowdown? Or is there some disconnect between them and everyone else?
Seems it's the latter. Analysts say Palm's problems continue operational challenges the company has been dealing with; for Nokia, there was just no way the company could match this year's 21% growth next year too.