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Palm Closes Retail Stores, Settles Treo Suit

By Staff Author | January 28, 2008

Palm announced plans to close all but one of its retail stores, as part of plans to narrow the focus of the company as it aims to compete with rival smartphone makers. The company said it will close seven standalone Palm stores and 26 stores found inside Airport Wireless locations. The Palm store at the company’s headquarters in Sunnyvale, Calif. will remain open.

“We continue to focus our company around core business initiatives and are consolidating more resources behind fewer programs in order to compete most effectively,” Palm said in a statement.

Palm also announced a rebate plan for Treo 600 and Treo 650 owners. The company said it will provide a cash rebate of $75 for the Treo 600 and $50 for Treo 650 owners whose handsets were replaced or repaired at least twice. The company also said it will repair any Treo 600 or 650 that hasn’t failed twice, but is outside of the original warranty.

The announcement comes as part of a settlement for a class-action suit filed in 2005. The suit claimed that the devices had defects and failed at unacceptable rates. Palm denied the claims and agreed to settle out of court.


Filed Under: Carriers, Devices

 

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