After a much-hyped start, sales of the Palm Pre are beginning to fall short of earlier projections, causing one analyst to backpedal on estimates and downgrade the company in a research note issued Thursday.

Palm Pre sales fell from 200,000 units in June to 100,000 in July, with this month slated to be lower than July, Morgan Joseph Analyst Ilya Grozovsky wrote in a research note shared with InternetNews.com.

Grozovsky cut his estimate on Palm (NASDAQ: PALM) Pre unit sales for the August quarter to 350,000 from 400,000, which he says is already low relative to Wall Street expectations. He downgraded Palm to "sell" from "hold."

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