Analyst: Palm Cutting Pre Production

Just a few months back, there was talk that Palm could not ramp up production to meet demand levels. Now comes word from Collins Stewart analyst Ashok Kumar claims that Palm has scaled down 2009 production levels of the Palm Pre by 500,000 units. Kumar cites the move is “due to weak demand” and that “momentum appears to have already peaked”.

Sprint nor Palm have disclosed the number of Palm Pre phones sold in the first two months, but many speculate the number to be in the area of 300,000. Kumar did not provide any information that would support the above statements. If you recall, this is the same Ashok Kumar who claimed the Palm Pre was dead on arrival back on May 1st.

[via Barron’s]