The shutdown affects all 30 Palm locations nationwide, including airport kiosks. The company did not specify a timeline, but rumors state that the stores will be closed by the end of January, one week away.
Commenting on the rumors that had been circulating previously, a company spokesman offered the following statement: "We continue to focus our company around core business initiatives and are consolidating more resources behind fewer programs in order to compete most effectively and build world-class, category-defining mobile solutions.
"We have therefore made the decision to close our retail stores."
Retail Outlets' Poor Reception
Palm's retail stores famously suffered from a lack of clear direction, due in part to the company's extremely limited product line, which forced the stores to have only a limited stock of devices and accessories. Many customers also complained about the lack of knowledgeable and attentive staff.
Latest Cost-Cutting Measure
Recently Palm has been making a number of moves to reduce its overhead as the company tries to fight its way back from two quarters of losses. The closure of the retail stores follows a round of layoffs at the company that quietly took place just before Christmas, likely resulting from the $30 million dollar revenue shortfall for the previous quarter.
Analyst expectations for Palm's current quarter place the company on track for another loss of 14 cents per share, or approximately $15 million dollars. Shrinking profit margins on the company's smartphones, increased competition, and market commoditization are considered major factors in the company's decline in income despite cost-cutting and increased device shipments.