Collins Stewart analyst Ashok Kumar today said that Palm and Hong Kong based Foxconn International are having difficulties producting high volumes of the Palm Pre. Sprint’s Dan Hesse confirmed the companies could have difficulty keeping up with demand in the early stages of the products release. “We won’t be able to keep up with demand for the device in the early period of time,” said Hesse. According to Kumar’s source at Foxconn, supply of units at launch will be even below a reduced estimate of 150,000 units.
“About two weeks ago, Foxconn was having problems with the flexible printed circuit board for the Pre and having trouble getting adequate yields for the capacitive touch-screen display,” Kumar told me by phone this afternoon.
Kumar believes the situation could go either way in the next week or two. “This is a dynamic situation,” notes Kumar. He advises that things could get better or worse.
Earlier today, we noted that Best Buy did not include the Palm Pre in next week’s ad.
[via Barron’s]
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