Sprint CEO attempts to concoct Palm Pre ‘frenzy’ by trumpeting ‘shortage’ expectations

“One of the simplest ways to create a shortage, and the buying frenzy that typically accompanies them, is to announce that there will be one. And this is precisely what Sprint CEO Dan Hesse did for the Palm Pre Tuesday,” John Paczkowski reports for AllThingsD.

“Speaking at J.P. Morgan’s Global Technology, Media and Telecom Conference shortly after Sprint announced the handset’s street date, Hesse said he anticipates that supplies will be limited, at least initially,” Paczkowski reports. “‘We don’t intend to advertise it heavily early on because we think we are going to have shortages for a while,’ Hesse said. ‘We won’t be able to keep up with demand for the device in the early period of time.'”

Paczkowski writes, “Interesting thing to say in advance of a product launch on which so much is riding, don’t you think? Unless you’re already trying to foster the perception of excess demand. As Gartner analyst Hugues de La Vergne noted last month, ‘It’s important to have a success like selling out. The Pre has to live up to the hype or else they’ll lose their momentum to rival products coming out soon after.'”

Full article here.

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