Desperation? Prices slashed on beleaguered Palm’s Pre [UPDATE: Sprint kills offer, claims ‘error’]

Apple Online Store “Palm Inc. is signaling something which many smartphone and PDA-phone makers do not want to signal… difficulty grabbing market share for the new Palm Pre,” Jon C. Ogg writes for 24/7 Wall St. “The new promotion out of Sprint Nextel Corp. has the cost of new Sprint customers down roughly to $99.99. While this $99 Palm is only for those who switch from another carrier and transfer in the phone number, does this exactly signal the greatest demand out there?”

“The $99.99 offer for new outside customers will last through October 31, 2009 and is for those signing a 2-year contract.,” Ogg writes. “Will this move boost sales? Perhaps. But this has to be a signal that the market penetration is low. We have seen several negative reports on this, and my own discussions with Palm Pre owners is not the same loving feeling you get from those using the new versions of the iPhone from Apple Inc.”

MacDailyNews Note:
Desperation time? Microsoft Zune already being discounted by retailers – December 13, 2006
Palm Pre: Microsoft Zune, the sequel – May 21, 2009

Ogg continues, “The odd notion here is that this launched in June and on the formal launch date we noted how there were not absolute sell-outs at some stores or how the launch allocations per store was very small.”

Full article – “Palm Pre Price Cuts… Paradise Lost?” – here.

[UPDATE: 5:57pm EDT: Sprint has pulled the $99 Pre offer. “Just six or so hours after offering a $100 service credit to new subscribers who purchase a Palm Pre and port their numbers over from another carrier, Sprint canceled it,” John Paczkowski reports for AllThingsD. “Here’s the company’s official statement on the matter: After further internal review today, the offer of a port-in service credit of $100 to new customers who buy the Palm Pre has been pulled, because it was put into the system in error.”]

MacDailyNews Take: Palm’s App World, or whatever they call it, just passed the 58 app milestone yesterday. Yes, fifty-eight. At this rate they’ll catch Apple just after time and space collapse upon each other forming an extremely dense scrambled mess that’ll be surpassed in indecipherability only by Microsoft’s Windows’ codebase.

Great Moment in Bullshit™: “What you’re looking at is that [Palm is] going to have the most valuable asset in the industry… From a products perspective, the [Palm Pre’s] impact on the market is probably as important as iPhone.”- Pacific Crest analyst James Faucette, June 03, 2009

James Faucette’s email address is

[Thanks to MacDailyNews Reader “Robert S.” for the heads up.]

25 Comments

  1. This tells us two things. First, Palm/Sprint aren’t selling them anywhere nearly as fast as they hoped; second, Sprint is not poaching customers from other carriers. They were hoping that Pre would give them former Verizon and T-Mobile customers (iPhone has AT&T totally locked up in the smartphone market); yet, it ain’t happening. Let’s see what happens with this little promo. I wouldn’t hold my breath if I were Sprint, though.

  2. @Jubei

    I think you are mistaken. It was done shortly after introduction, thats why Apple gave customers $100 rebates. As I recall there was a very nasty reaction from Apple customers who had been early adopters, me one of course. ” width=”19″ height=”19″ alt=”cool smile” style=”border:0;” />

  3. @ Larry

    Completely different situation. Apple wanted extra profit from the Apple-crazy early adopters. Then, they lowered the price to include a wider audience, who balked at the original price; this second round of customers saw the reduction as a “bargain” (and a way to feel smug versus the early adopters who were showing off their new toys). Smart move; the early adopters were ticked off, but they got their store credit (which made them happy), and the much more numerous “second round” customers were happy from the start.

    Palm is just trying to unload all the Palm Pre’s they can’t sell.

  4. I’d been a palm user for years since the first one , Palm Pilot. Got a iPhone3Gs and haven’t looked back. I tried the Pre before I got my iPhone. It wasn’t impressive at all..Slow..unintuitive.. You cant get the iphone out of my hands, its almost made my macbook an antique as I hardly touch it now..

  5. No wait a minute. Could it not also mean that the Palm Pre is selling well beyond their wildest expectations and with the economies of scale, law of demand and supply (you demand what we supply) the price can afford to be dropped and all discussions about takeover bait can be dismissed?

    (we pause for one minute of deep reflective focused thought).

    Nawwwwwwwwww.

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