Palm, the pioneer of PDA phone, is struggling with its sales. According to its recent sales report, Palm posted 29 percent drop of sales from the first quarter of fiscal year 2010 (June-August 2009) compared to Q2 FY 2010 sales (September – November 2009).

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. We remain confident that Palm’s innovative product design capabilities, integrated cloud services and the differentiated and delightful Palm webOS experience will provide the foundation for our sustained success.

The two struggling partners, Sprint and Palm, didn’t get much success with Palm’s Pixi and Palm Pre phones. Palm’s WebOS is good, but isn’t enough to drive up the sales. If Palm can’t make a hot-selling product next year, it is just a matter of time that when this PDA phone pioneer will be bought by another company.