14 DAY TRIAL // Sunnyvale-based mobile phone maker Palm has reportedly suspended all future orders in its smartphones, at least this is what a recent report from OTR Global suggests. It seems that three different sources “in the Taiwan handset supply chain” have confirmed that Palm asked Foxconn International Holdings Co. Ltd. to halt production of both the Palm Pre and the Palm Pre Plus for February.
At the same time, the handset vendor is also reported to have asked Compal Communications Inc. to suspend the production of both the Palm Pixi and Palm Pixi Plus for February, though some suggest the production for Pixi Plus hasn't been halted. The most interesting part of the report is that, while both the CDMA2000 Pre for Sprint and the CDMA2000 Pre Plus for Verizon were affected by the move, there are no details available on whether the production is expected to resume as soon as March is here.
When first learning the news, one will certainly start making assumptions, but it seems that things are not as they seem to be in the end. The first conclusion that can be drawn is either that Palm is on the verge of being purchased by another company, something that has been rumored for a long time now, or that it is getting ready to deliver new hardware components for its devices, as BGR notes. However, it seems that things are much simpler than believed.
“Palm regularly adjusts its product manufacturing levels to manage inventory. In anticipation of the Verizon Wireless launch and Chinese New Year, we increased production levels prior to February, and anticipate ramping production back up after the Chinese New Year ends,” is what Palm had to say on the matter, according to Engadget. In other words, this is only a temporary decision, and as soon as the Chinese New Year arrives, things will go back to normal.