Over the last few weeks, Palm’s (NSDQ: PALM) outlook has started to appear extremely shaky as competition ramps up and analysts wonder if the handset maker has any surprises coming in its pipeline. With all of the attention going to Apple’s (NSDQ: AAPL) iPhone, RIM’s (NSDQ: RIMM) Blackberry, and even the upcoming Google (NSDQ: GOOG) Android, Palm also has to step up its game. The first signs of a plan are emerging with rumors leaking out that Palm has hired Matias Duarte, the user-interface designer behind the easy-to-use and attractive experiences on both the Sidekick and Helio devices. Engadget reports that in addition to Duarte, Palm also hired his fellow Helio designers to create Palm’s next generation UI. There’s no official statement, but Palm confirmed that Durarte is working at the company. So, the question is whether a new UI can change Palm’s current trajectory, or if it is too late. Two weeks ago, the company reported that it lost $43.4 million, or 40 cents a share in the fourth-quarter ended May 30. That’s a drastic drop compared to the year ago period when Palm earned a profit of $15.4 million, or 15 cents a share. Revenues during the period fell to $296.2 million, or 26 percent from $401.3 million a year ago. Palm has stayed alive with the introduction of the Centro, a $99 device that is popular with consumers, but has lower margins than Palm’s flagship Treo device. To be sure, the timing will be tight. Dow Jones reportedin October that the company warned it would not have a “completely new device” for another 18 months,” which translates to at least April 2009, or nine months after the iPhone 3G launch and at least a few months after Google’s Android launch.
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