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

58 Comments

  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.

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

    My mom’s friend looked at an iPhone and ended up buying a BB because she said she could not type on the iPhone with long fingernails. I wasn’t there when she tested it but I guess it’s a problem.

  7. I watched the QT of the Pre(sentation):

    Rubinstein robotically reading from the numerous oversized teleprompters was classic!

    Colligan is a SUPER creepier version of Ned Flanders! Who could work for that effing assclown?

    Palm neglected to mention that they actually bought Handspring/Treo to “invent the smartphone”. A lie by omission.

    All in all — Palm remains very 3rd rate. No chance of gaining traction in the market. An easy promise.

  8. This guy sounds like Apple back in the day. Apple’s product was SOOOOO much better than anything else that they couldn’t possibly face any competition from anybody else in the education and creative markets.
    Then Dell stole Apple’s lunchbox for about 10 years and Adobe developed all their creative apps for Windows and left Apple out to dry.

  9. Palm Pre looks like every other crappy ‘iPhone killer’.

    Dont these people understand that they are COPYING the iPhone and that they are ALL chasing the iPhone?

    At some point, we are going to be hearing from Apples lawyers about patent infringement from a number of these ‘innovative’ companies.

    Then there are the dumb-ass reviewers; I read one guy in the UK say that Apple has an advantage over the Pre because they have an App Store with a ‘few hundred apps’.
    Where do they find these dopes?

    The name: Has anyone noticed that this is a really BAD name? WTF is a ‘pre’?

    Did Colligan and Rubinstein forget some letters?
    Should it actually be the Previa…no, thats a car.
    Maybe the Predictor? No , I think thats a pregnancy tester…

    Maybe its actually called the Prefix?

    Perhaps Windows next piece of crap will be called the Suf? (As in Suffix)

    Where do they find these not-too-bright people at these not-very-good companies?

  10. What does the Palm pee bring to the table that the iPhone, blackberry whatever or Android doesn’t?
    Absolutely nothing.

    Long finger nails cause problems with iPhone?
    I guess Apple wasn’t marketing the touch screens to hookers and strippers.

  11. Here’s something I don’t get.

    Back when the iPhone was first released, the only applications that 3rd party devs could write were web-apps. Everyone groused and bitched and moaned at such a limited platform, ultimately cheering when the iPhone SDK was launched. In fact, this launch gave the iPhone it’s second wind, and had it not happened the iPhone would probably have sold 30-40% fewer units than they have since said launch.

    So, here we go with the Pre phone. A device that only supports web-apps. The difference here is that is not going to change. I mean the OS is called WebOS for crying out loud! So where are all the naysayers who called out Apple, were is all the grousing over the limited potential.

    Just goes to show you that Apple is held to a higher standard than the rest of the tech sector, even when entering virgin territory.

  12. nekogami

    I actually have a lot of friends who have longer fingernails, and they’re not hookers or strippers. In fact, most “fashionable” women will have their nails done most of the time.

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