After the fanfare that announced the launch of the Palm Pre last year sales have been less than satisfactory, the company's Chief Executive Officer (CEO) has admitted.
Shares in Palm lost 18 per cent of their value after the news emerged that it would be nearly halving its predictions for revenue this quarter, which is now expected to come in at around £211 million.
Analysts had forecast an average earning of 280 million and Palm itself had aimed even higher.
Factors deemed to have hurt demand for the Pre include limited availability at launch and big brand competition, which squeezed Palm to the margins of the market.
According to Palm, many of its network provider partners have been discouraged by the performance of the Pre and have consequently backdated orders for the smartphone until convincing consumer demand surfaces.
Palm and independent analysts had predicted that over £1 billion in revenue would be made this year, but the firm now admits that the real figure will be considerably lower.
Palm's CEO Jon Rubinstein said: "Driving broad consumer adoption of Palm products is taking longer than we anticipated."
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