408,000 is small. Really?

Regarding Palm’s recent revenue forcast (via NYTimes):

The company shipped a total of 960,000 smartphones during the third quarter ended February 26, but sell-through — which reflects how many devices actually end up in consumers’ hands — totaled 408,000 units, lagging the 600,000 units or more many analysts expected.

I understand that the point to consider with this news is the decreasing sales trend not the total number of units sold, but it’s still sad to think that a company that moved over 400,000 units is doing badly.
As much of a Apple enthusiast as I am, I really want to see Palm succeed with their Pre and WebOS. They need to break off from their shitty mobile provider, Sprint.