Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : PALM - The rebirth of Palm Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Win-Lose-Draw who wrote (4300)	3/19/2001 1:14:40 PM
From: arun gera	Read Replies (1) \| Respond to of 6784

>And so the question remains in my mind: if PALM can't be insanely profitable now, when can it be? >> Very good question. However, when you are selling $300 devices, don't expect too much profit. I don't think even Nokia cannot make money on that in small volumes. Nokia is selling 10s of millions of phones to generate profits. Right now it is a do or die battle against Microsoft. Almost like pre-1997 Netscape. Not many companies win against Microsoft. Yahoo, if it falters now, is probably the next victim. Palm's strategy trying to do what Microsoft did to IBM OS-2 in 1990. It is more important to have 20 million Palm devices than profit (profit will be nice too). Have to get independent developers to commit to Palm platform over any other. It is quite apparent that 2-3 OS will survive on the PDAs/cell phones. The volume of devices is likely to be in hundreds of millions in a few years. If Palm lives on for a few more years and is still one out of the top two, profits can be made. Arun

To: Win-Lose-Draw who wrote (4300)	3/19/2001 3:08:31 PM
From: lkj	Respond to of 6784

WLD, if PALM can't be insanely profitable now, when can it be? How profitable was Qualcomm before it sold its infra, handset, and service units? Using earning and rev growth as the only factors can be misleading some times. At this point, we have no idea what Palm is really doing internally that is making the expense so high. All we know is that the company is working on so many technologies and so many partners that it is focusing on growth mostly. Imagine that in 2003, Palm may ship around 30 million PDAs, and the rest of the licensees can probably do 30 million as well. If PalmSoft gets $10 per license, you are talking about an spin off at the end of 2002 for PalmSoft with a forward OS revenue of $600 million. The future of PalmSoft will mostly be determined by what it can bundle on top of the OS. This mix of service and applications will generate higher rev and earning than the OS in the long run. So how much do you think PalmSoft will worth in two years? A WHOLE LOT MORE THAN PALM IS WORTH TODAY! Regards, Khan