Palm Press — Pre Gets an Update, Staff Reduction Hits Palm

Palm PreUPDATED: It is Thursday and that can only mean it’s time for another Palm (s palm) Press. Palm Press is our weekly look at the world of Palm. The big news this week was the appearance of the version 1.2 update for the webOS used on the Pre. WebOS 1.2 brought a significant number of improvements and new features to the Pre. This update accompanied the launch of paid apps in the App Catalog, and it’s expected we’ll start seeing apps in greater number appear going forward. Unfortunately, the 1.2 update exposed a problem with the Pre backup service that can force a reset of a phone if the Palm Profile server is down.

In the less happy news department, Palm has apparently had to reduce its staff due to disappointing sales of the Pre. The exact sales figures are not known but Palm’s filings with the SEC show sales numbers that only reflect deliveries to Sprint (s s). These numbers do not reflect how many phones have actually sold to consumers, and analysts fear there are quite a few in Sprint’s inventory system unsold. This is thought to be the reason behind the staff reductions. Palm has not stated where the reductions would be taken.

It has been widely expected since the launch of the Pre that Verizon (s vz) would be carrying the phone when Sprint’s exclusive period ended. Verizon’s CEO stated a while back that the carrier would indeed get the Pre at that time. A rumor that cropped up this week that Verizon would not in fact carry the Pre has been widely disputed by those in the know.

Update: CrunchGear has received the following statement from Palm:

“We are not laying people off. As we continue our transformation we are better aligning our staff with our business objectives.”