Palm in red as iPhone grabs sales

Business Materials 2 October 2007 02:42 (UTC +04:00)

( BBC ) - The US handheld computer maker Palm has reported a three-month loss as the launch of Apple's iPhone hit sales of its own smartphones.

It made a net loss of $841,000 (?412,000) between June and August, compared with a profit of $16.5m in the same three months of 2006.

Palm warned on 19 September that it was likely to report a loss.

Analysts blamed it on increased competition from Apple and other manufacturers of high-end phones.

It is the first set of results since Palm sold one quarter of its shares to the private equity house Elevation Partners.

"As we move toward completing the recapitalization transaction with Elevation Partners, we are excited to strengthen our ability to accelerate Palm's growth in the future," said Palm's chief executive Ed Colligan.

Apple launched its iPhone in the US on 29 June.

Palm recently withdrew its Foleo keyboard and monitor devices for its Treo smartphones.

But it has launched its Centro device, which is a lightweight, cheaper device, designed to compete with manufacturers such as Samsung.