I’ll start of on a positive note. This is no $500 million dollar hematoma, the likes of which we saw from Palm last year. That’s as good as it gets, though. When you look at the raw numbers, the situation is bad.

For Q2 of fiscal 2010 for Palm, the company sold just 783,000 smartphones, a decrease of 5% from last quarter. Just so you get that, leading up to the holidays and on the heels of the Pixi release, Palm sold fewer smartphones than it did last quarter.

Here’s CEO Jon Rubenstein:

We are continuing to execute strongly against our long-term strategy with the delivery of Palm Pixi, the new carrier launches completed this quarter, and the upcoming opening of Palm’s full developer program. We’re still in the early stages of a long race, and we’re energized by the opportunity to compete in this exciting market.

I hate to be the one to tell you, Jon, but this won’t be a long race at all if you keep losing money and market share. There is no long-term plan. You need to get app development going in a big way. You need to get your devices into the hands of three times as many consumers and hope that half of them like what you sell. You need to have thought of this a year ago, long before the Pre launch.

Unless, of course, your long-term strat is to get bought. That I can actually see happening.

Source: AllThingsD