Palm reports three month losses

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The smartphone maker Palm has reported worse-than-expected losses but said its reorganisation is on track.

The company that makes Treo phones lost $31.5m (Â£15.9m) in the three months to the end of February compared with a profit of $11.8m the year before.

Palm has struggled in the past year with competition from the iPhone and some production delays.

It also said that its lower-priced Centro phone has got off to the strongest start of any of its products.

Palm said that 70% of customers buying a Centro were trading up from a normal phone to a smartphone.

It blamed the loss on continued declines in its traditional handheld business and its aging Windows Mobile product line.