Palm CEO: Smartphone Market Still Early In Cycle
NEW YORK -(Dow Jones)- Palm believes the smartphone business is still early in its cycle and there remains much opportunity for the mobile-device maker, said President and Chief Executive Ed Colligan.
"We've been catching a lot of little waves, but there's a big wave coming," he said during the company's analyst and investor day presentation on Tuesday. "We're lining ourselves up to catch that wave."
During the presentation, which was Webcast, Colligan said the niche market will continue grow into a larger slice of the mobile-device pie.
The Sunnyvale, Calif., company continues to bat away speculation that it is a takeover candidate for larger handset makers such as Motorola and Nokia. The company has a small, but loyal base of customers for its line of Treo smartphones and is an established leader in that growing market.
But the company faces intense competitive pressures from rival handset makers, as well as from Research in Motion, which leads the market in mobile email devices for businesses. Following stumbles in its product rollout last year, Palm was seen as vulnerable for a takeover. Shares are up 28% since hitting its 52-week low in December.
With an eye toward growth, Colligan said Palm plans to invest in its software platform and applications. The company is also working on its hardware to reduce the complexity of the product and time it takes to hit the market.
Colligan said that the company will also focus on building up its brand, which he calls "a critical asset," and will make a bigger push for global growth, which has been an area of weakness for the company.
Palm has also been building its patent portfolio with hopes that by licensing its technology, it can reduce its own costs. Palm has 370 patents pending and 220 patent issued, and it expects to file for more than 140 patents this year.
-By Roger Cheng, Dow Jones Newswires; 201-938-2020; roger.cheng@dowjones.com
(END) Dow Jones Newswires"
Posted to the site on 10th April 2007
