Besides a weak market this morning, the main reason for our hit was the reduced guidance issued by Palm. Apparently their new phones are not selling as well as the hoped. It was a big cut in guidance, about 25%. People translate this into reduced need for MRVL's chips.
I think that you are uniformed. Palm is indeed a Marvell customer. They use the WiFi Direct chip technology in the Palm Pre Plus and Palm Pixi Plus. This technology allows these new phones to serve as WiFi hotsopts to up to five devices, just like a MiFi.
The good news to this would be people arent buying Palm products,,, Rimm and Mot would benefit according to one(Morgan Keegan views Palm's (PALM) lowered guidance as positive for Motorola (MOT) and Research in Motion (RIMM) since the firm believes it shows Palm is not gaining market share at Verizon) Also WDC seems to be selling quite well(Western Digital (WDC) will benefit from continued tightness in HDD capacity and components, as well as demand that surpasses normal seasonal levels.)