Palm Pixie Launch Delayed Until 2010?
Palm’s next webOS handset, the so-called Eos (codename: Pixie), is still in the pipeline, but it may not arrive at market for some time. Though some observers have speculated that the device would debut in the late fall in time for the holidays, others are now suggesting that a 2010 launch is more likely.
“We think that the Pixie, which we believe is being geared for AT&T and has a different form factor than the Pre, is not likely to be available for the 2009 holiday season,” Morgan Joseph Analyst Ilya Grozovsky wrote in a research note to clients, adding that Palm (PALM) needs to push the Eos hard if the company hopes to hold its own against Apple’s (AAPL) iPhone–particularly its $99 model–at AT&T (T).
“We do not have significant unit assumptions for this product given the continued success of the iPhone at AT&T,” Grozovsky said. “Nevertheless, we believe that Palm needs all the unit help it can get to achieve profitability and a delay in incremental units at AT&T with the Pixie would be a setback to this goal.”
Palm declined comment on the Morgan Joseph note.
Incidentally, Grozovsky is among those analysts who believe Pre sales are slowing. According to his checks, Pre sales fell from 200,000 units in June to 100,000 in July. He expects them to fall even further in August. And should this occur, a price cut may follow.
Said Grozovsky: “Should sales prove to be in line with our checks, we believe price cuts may be looming going into the holiday season in an effort to spur holiday sales of the Pre. This could, in turn, hurt Palm margins as we believe that Palm will have to make price concessions to Sprint” (S).