Palm CEO: Why would we price ‘Pre’ less than iPhone when we have a significantly better product?

“The biggest unknown [with the Palm Pre] is price, which went unmentioned during the demo. My assumption is that Palm would try to take market share by coming in significantly lower than the $200 or so Apple wants for its iPhone,” Peter Kafka reports for AllThingsD.

Kafka reports, “But when I ran that theory by Palm CEO Ed Colligan, he looked at me liked I’d peed on his rug. ‘Why would we do that when we have a significantly better product,’ he asked, then walked away.”

Full article here.

MacDailyNews Take: More unwarranted hubris from a deluded man who for years has done nothing of note but pilot his company directly into the ground.

We’ve learned and struggled for a few years here figuring out how to make a decent phone. PC guys are not going to just figure this out. They’re not going to just walk in.Ed Colligan, Palm CEO, November 16, 2006, laughing off the idea of Apple entering the smartphone market.

The more we see and hear from Palm, the more we believe they’re angling for a buyout.

Oh, by the way:

We’ve been pushing the state-of-the-art in every facet of design… We’ve been innovating like crazy for the last few years on this and we’ve filed for over 200 patents for all of the inventions in iPhone. And we intend to protect them.Apple CEO Steve Jobs unveiling iPhone, January 9, 2007


  1. Big Mistake Ed. 1, your product isn’t out yet……and needs some sort of momentum to get people to want to buy it. 2, no Apps or 3d games. 3, No real App store.

    I could keep going, but if you priced it at $150 you could make some inroads in the market. BUT, you are on that crappy network……Sprint.

  2. saw a news program this morning praising the new Palm Pre because it is easier for women with fingernails to use than the iPhone.

    as a guy, I had no idea that the iPhone was tougher to use with fingernails.

    but wouldn’t that be true with all touch screens?

  3. I Love how these manufactures feel when they come outt with a new product and whole world will drop everything to get there product ? Apple changed everything in there world and still they think there better ? What a joke ? Let them first change the owrld and see how it feels, and I’ll keep my iphonee,,, thank you very much…

  4. I believe that if the tables were turned and it was Apple bringing out the entry product with Palm being the strong incumbent, Apple might consider incentive pricing even with a great product like the iPhone. I don’t perceive Palm to have a strong hand at this point. In 2002 or 2003, perhaps, but not now.

  5. Actually Sid, they didn’t “get” it until the iphone’s debut. So if AAPL was working on it for 3 years before that…

    I’d say they are about 4 years behind now, and iphone v.3 wil be out when this vaporware distills out…

    AAPL is at a dead run and lots and lots of other CEOs will be sad too.

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