Palm Pre, Pixi Production Halted?

Palm Pre and Palm Pixi production has been halted for February, according to three Taiwanese manufacturing sources. Palm Inc. has asked its manufacturing partner, Foxconn, to stop the presses, as it were.

“The decision is very sudden, and Foxconn was told to reduce all February Pre forecast to zero on Wednesday and nobody knows whether shipment will resume in March,” said one source.

Another source told Engadget that the production line has been only temporarily shut down, for the Chinese New Year.

Sources say the CDMA2000 Pre for Sprint-Nextel Corp. and the CDMA2000 Pre+ for Verizon Wireless are part of the stoppage, along with the Pixi and Pixi+. Even so, a few units of the Pixi+ – less than 5,000 – will be delivered to Verizon for the month.

The claims have been met with skepticism, bafflement and bewilderment, as there appears to be no good business reason for the halt in production. The new Palm webOS-based devices have not been met with iPhone-like excitement levels, but by all accounts continue to sell steadily for Sprint and Verizon. The move, if true, is sure to spark takeover talk.

The three anonymous sources listed by OTR are repeat sources, it said, whose information has been accurate in the past. Only time will tell if that’s the case this time.


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