Financial Burden of Palm Pre Launch

Palm Inc (NASDAQ:PALM) have a lot riding on the launch of their latest Smartphone, the Pre, but the phone is going to be very costly for the company. The problem that Palm has is their product line is getting old now and as yet; there is nothing else in the pipeline.

Launching a new phone takes a lot of capital, production and marketing does not come cheap, and it is vital to a successful launch. There are those who estimate that the cost for launching the Palm Pre will be a high as $100 million.

Palm’s recent remarketing of shares that represent the stake that Elevation Partners purchased came as no surprise to most, and this move will not be the last. The firm will now be able to get back its $49 million of its investment, which they plan to purchase stock with. Palm will get the remaining proceeds after that point.

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