Palm pre sales into the channel last month were said to have reached over 300,000 units according to Ed Snyder, Charter Equity Research analyst. With an estimated 70,000 in May, Snyder states that the company has yet to catch up with the ever growing demand.

Start up problems and uncertainty about initial demand play a big part in limiting the number of phones in stock, approx 120,000 were sold in a matter of days. The company are now racing and producing a staggering 15,000 units per day and are likely to be shipping 1 million phones to sprint in the first quarter of production.

A WCDMA version of the phone according to Snyder appears imminent, which could mean that the company could reach cash flow break sooner than expected. It is anticipated that they will launch a WCDMA Pre with Telefonica in September, with shipments starting in time for the holiday season. That combined with Sprint and the already talked about roll out by Bell Mobility in Canada, could and should drive sales above 1 million a month.

Source – blogs.baron.com