Palm Making Phones Again in China

After weeks of bad news about its future, Palm finally has something to feel good about again.

Eschewing a formal announcement – why, we wonder, considering company fortunes as of late – Palm’s VP of communications confirmed in a blog that production of the Pre resumed in China late last month. Earlier this year, the company claimed it was shutting down operations for most of February in recognition of the Chinese New Year, but many in the blogosphere speculated that it might have something to do with the company’s struggles, which include mediocre reception of the Pre and its cousin, the Palm Pixi, in the U.S. Even a partnership with Verizon in January hasn’t boosted Palm to the success it hoped to achieve when the Pre was unveiled in the summer of 2009.

A blogger at CNBC says a Palm source told him that Verizon and Sprint were cutting back on their handset orders because consumer demand was waning.

Palm’s stock price is off more than 50 percent just since January.

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