Some analysts are downgrading Palm's stock due to weak sales on the Palm Pre. Morgan Joseph analyst Ilya Grozovsky says Pre sales in July were half of what they were in June, and that August is on track to be lower than July.

Why has the Pre's popularity peaked already? Could it be the weird commercials Palm has been running? We've heard rumors of Palm Pre hardware problems but for the most part the Pre has been a good phone and WebOS is certainly impressive. So what gives? In our opinion the screen is simply too small. At a time when Apple and RIM are moving for more screen space on their phones, Palm comes in smaller. It doesn't help that the keyboard is small too.

The more obvious reason may be that the Palm Pre is only available on Sprint and Sprint has rapidly been losing customers recently. If the Pre had been launched on Verizon, and/or a GSM version been available on AT&T, it probably would've faired better.