You Call 50,000 Palm Pres Sold A Success? Investors Don’t Think So.

Some early estimates are in on how the Palm Pre did its launch weekend. J.P. Morgan puts sales at more than 50,000, other analysts go as high as 100,000. Everyone is trying to spin this as a success because Sprint stores "sold out" of their inventory. Investors aren't buying the story. Shares of Palm are down 10 percent, as of this writing. The opening weekend Palm Pre inventory was too low to begin with—either because of manufacturing constraints, Palm's own financial constraints, or by design. It's always good PR to be able to say you sold out. But if Palm seriously wants to go up against the iPhone it is going to have to do a lot better. When the first-generation iPhone launched two years ago, in comparison, Apple sold 146,000 units its first weekend. By the time Apple came out with its second iPhone 3G last year, it sold one million units the first weekend.