With the earnings report, Palm emphasized high volume of shipments for their Pre/Plus and Pixi/Plus models, however it appears the carriers selling them are having trouble getting customers to buy, even with extreme price cuts.
Ilya Grozovsky of Morgan Joseph & Co., said "Palm is essentially an accelerating death spiral," and cut his price target on the shares to $0. "They have had a tremendous problem selling their devices even at carriers like Verizon with 80 million subscribers."
Palm currently has about $500 million in cash, but Canaccord Adams analyst Peter Misek believes that the cash will only last "up to 12 months" given the giant quarterly losses and recent expenditures into advertising as a way to increase sales. Additionally, "Palm's troubles will only accelerate as carriers and suppliers increasingly question the company's solvency and withdraw their support." Misek also slashed his price target to $0.