Replies to post #1817623 on BB's Stock Haven

[JJSeabrook]

PALM lost Radio Shack. RadioShack Discontinues Selling Palm Phones -Store EmployeesLast update: 4/19/2010 12:47:26 PM

By Roger Cheng
Of DOW JONES NEWSWIRES
NEW YORK (Dow Jones)--RadioShack Corp. (RSH) stores in major metropolitan areas appear to have discontinued sales of Palm Inc.'s (PALM) smartphones, another sign the struggling handset manufacturer is running out of options. RadioShack stores in New York, Boston and Chicago phoned by Dow Jones Newswires reported they were no longer carrying Palm's Pre and Pixi phones and employees indicated the stores wouldn't be replenishing their inventory. One store reported it still had some Palm phones available, but declined to comment on future availability. RadioShack's Web site also suggests the retailer has stopped sales of Palm smartphones. The company has removed references to Palm products from its pages. A RadioShack spokesman declined to comment. The discontinuation of Palm's products marks the latest set back for the troubled company, which pioneered the melding of PC-like capabilities with phones but fell behind as competitors emerged. Sunnyvale, Calif.-based Palm has hired bankers to advise it on a possible sale and several Asian telecommunications equipment providers are seen as interested suitors. It also follows news last week that Michael Abbott, who oversaw Palm's software and services operations, resigned. Abbott's last day is expected to be April 23, according to a regulatory filing. The combination of developments helped push Palm shares sharply lower. In early afternoon trading, Palm shares were down 11.5% at $4.96. The discontinuation of Palm sales at RadioShack follows a research note from C.L. King analyst Lawrence Harris, who said stores in the New York Metropolitan area no longer carried the product and that sales would be limited to phones in stock. That led to speculation the electronics retailer would phase out the phone more broadly. "While the apparent decision to place Palm up for sale and the reported interest by several parties has captured the attention of investors, we note that the company's fundamental outlook remains highly challenging," Harris said. Palm spokeswoman Lynn Fox declined to comment. RadioShack previously sold Palm devices through a reseller agreement with Sprint Nextel Corp. (S) Palm's products are also available through Verizon Wireless, which RadioShack doesn't have an agreement with. But Palm sales at the nation's largest carrier got off to a rocky start, further illustrating the company's problems. AT&T also plans to sell Palm's phones in the next few months. Last week, the phones were made available in Germany. -By Roger Cheng, Dow Jones Newswires; 212-416-2153; [e-mail] (END) Dow Jones NewswiresApril 19, 2010 12:47 ET (16:47 GMT)