Palm created lots of buzz for its Pre smartphone during the days and months leading up to its launch. Once the device hit the market, it produced sales records early for Sprint before starting to fade in popularity as Sprint was unable to lure new customers to its network with the device.

According an analyst at Collins Stewart the best days for Palm and its Pre have come to pass. Some analysts are recommending a sell on Palm stock after Palm has reportedly cut production of the device in the face of falling demand.

According to the analyst, Palm shipped under 300,000 units in May and June. Palm ramped production rapidly in preparation for increasing sales, but the sales of the device have apparently peaked already. Kumar claims that production levels for the Pre have been cut by 500,000 units for the year.

[via Barrons]