Analyst contradicts other reports, says that Palm Pre sales continue strong

While there has been some talk of slowing sales of the Palm Pre, one analyst has a different opinion. James Faucette, who works for Pacific Crest, had done his own "checks" and has found that sales of the device remain "robust". Sprint stores have enough inventory, he notes, although he believes that low supply at Best Buy and Radio Shack stores are negatively affecting sales totals. Faucette believes that 40,000 units sold a week can be achieved throughout August as long as inventory is replenished at Best Buy and Radio Shack. This theory is not what Pali Capital's Walter Piecyk believes. Piecyk thinks that supply is fine and that it is demand for the Pre that has tapered off. He says that the number of units sold has dropped to 30,000 in the last week from 40,000 during the prior week.

Faucette expects a mid-tier webOS device to hit AT&T by the holiday season. This phone, added to other models with different carriers, could force the analyst to raise his estimate of Palm's sales for the current fiscal year, which he sees at $1.6 billion dollars, rising to $1.8 billion next year. And despite the success of the Pre and the webOS operating system, the analyst still sees red ink for Palm to the tune of 32 cents a share this year, improving to a loss of 22 cents a share next year.

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source: Barron's