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| Palm Admits Error, Fixes Nothing | |
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2:00 a.m. Aug. 20, 2002 PDT
(page 2) "I thought people should know that it (the m130) is a 12-bit screen, but Palm is using the marketing message, acting like it has a 16-bit screen," said "an0nym0vs" the person who started the debate on whether the m130 was a 16-bit product on the Palm message boards. "It was dishonest of Palm to say that it supports a 16-bit screen." Kort said the difference between a product with a 12-bit screen and one with a 16-bit screen is significant. The quality of the photographs are much better on a 16-bit screen, but the cost for a product with a 12-bit screen is as much as $45 cheaper. The "honest mistake" could have also taken away some of Palm's competitors' business because customers were led to believe they were receiving a product of similar quality but for less money. However, Seamus McAteer, an analyst with Zelos Group, says most people won't care about the error, although the company will probably lose credibility among the "geeks." McAteer also said the company's latest faux pas is yet another indicator of the "shoddy marketing and management" plaguing Palm. "It's indicative of the way the company has been run the last three years since it split from 3Com," McAteer said. "Since they hired (former CEO Carl) Yankowski that place has been a disaster." As of Monday afternoon, Palm (PALM) shares went up a penny to 71 cents. Three years ago, the stock traded at $57 per share. << Back 2 of 2
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