Beleaguered Palm cuts Pre price (again), unveils Pixi; Shares downgraded on Pixi exclusive carrier

Apple Online Store “Palm is cutting the price of its Pre device by $50, to $150, and on Sept. 9 announced it will release a new scaled-down smartphone, called the Pixi, in time for the holiday selling season. The Sunnyvale (Calif.)-based company didn’t disclose the Pixi’s price, but said it would be more ‘affordable’ than the Pre and aim for a younger audience,” Aaron Ricadela reports for BusinessWeek.

MacDailyNews Take: Palm’s Pixi! Falls apart even faster than Pre!

Ricadela continues, “It has sold a fraction of the number of smartphones sold by rivals, according to analysts. ‘It’s going to be a very competitive holiday season’ in the smartphone market, says Palm Chief Executive Jon Rubinstein, sitting in front of a fireplace in a wood-paneled conference room in San Francisco’s financial district. ‘We want to goose sales because we want a larger installed base’ for the company’s WebOS software, he says.”

MacDailyNews Take: Lurch mini™ is aiming to hit the 60 apps milestone by Christmas.

Ricadela continues, “Palm’s decision to announce another product three months after the Pre went on sale is giving some analysts pause, however. ‘The thing you worry about most when you introduce a new product is cannibalization’ of the older one, says Shaw Wu, an analyst at Kaufman Bros… ‘Perhaps sales of the first product are not as strong as they thought.'”

MacDailyNews Take: How does a cannibal lose weight? Stick to Palm products. Seriously, how do you cannibalize a product that barely sells in the first place?

Ricadela continues, “Rubinstein says it will compete with Apple’s $99 iPhone 3G. Instead of a drop-down keyboard like the Pre’s, the slimmer Pixi is shaped in a ‘candy bar’ format with a keyboard that’s always exposed.”

MacDailyNews Take: Bzzzt! Wrong answer.

Ricadela continues, “By increasing the value of an instant rebate that consumers redeem when they buy the phone from Sprint. The announcement was preempted by a brief Sprint promotion on Sept. 8 that offered consumers switching from other carriers $100 off the Pre’s price. But Sprint began and then discontinued the offer on the same day. A Sprint spokeswoman couldn’t be reached for comment. ‘After all the dust settles … it’s going to be $149,’ Rubinstein says.”

MacDailyNews Take: Bush-leaguers.

Full article here.

The Associated Press reports, “Palm Inc.’s choice of Sprint Nextel Corp. as the exclusive carrier for its new Palm Pixi smart phone may hinder sales of the device, a Credit Suisse analyst said Wednesday.”

“Analyst Deepak Sitaraman lowered his rating on Sunnyvale, Calif.-based Palm to ‘Neutral’ from ‘Outperform.’ Shares fell 73 cents, or 4.9 percent, to $14.25 in premarket trading,” AP reports.

“Sitaraman cut his target price on the stock to $12 from $18,” AP reports.

Full article here.

MacDailyNews Take: Boy, Apple castoffs at beleaguered Palm sure picked a great day to announce yet another Pre price cut and a cheap candy bar phone. Smirk. They’ll get so much tech coverage today, it’ll be utterly invaluable un-valuable. Amateurs.


  1. Can you imagine the outcry if MDN’s practice of amateurish name-calling of executives was picked up by an anti-Apple site? Just ponder the venom targeted at those who would poke fun at Steve’s weight, appearance, or personal faults. Oh no! Grow up, MDN

  2. Relax DJ. This ain’t the only sport with trash talking. And if you further explore the web…Microsoft fan sites are bashing Apple too! You know your life is shallow when the disappointments in your life revolve around MDNs comments.

  3. Wasn’t the official price of the Pre $299? I thought you only got the $199 if you bought at Best Buy or sent in your rebate. Did I miss some intervening price cuts?

    If it was $299, this is a 50% cut since it looks like the $149 does not require rebate forms.

    BTW, Rubinstein confirms that this year’s Pre is still having trouble competing with last year’s iPhone 3G. What a joke!

  4. @Morticia, if I called you an idiot, would that be an insult? I didn’t invent the word, but it would still be an insult. And a dumb one.

    @RegularReader, there’s a difference between trashing someone’s products and going after their CEO on personal grounds. There’s plenty to bash about Palm and the Pre: why does MDN feel the need to resort to childish personal insults?

    @Bob, good call. I have to imagine that one, too, but there’s a ton of good Jobs material to pull from. And it would be just as uncalled-for as what MDN keeps doing.

  5. they say “competition is good”
    I say “is the competition good?”
    Business 101 folks, wanting to be in business is no more meaningful than wanting to be rich, unless you work at it in an intelligent manner. Opening a business makes no one ‘competition’ any more than going to your ‘9 to 5’ makes you rich. Those who are competition or rich, have worked very hard to get there, and it’s not achievable by the average person. I see tons of armchair analyst on MDN who are clueless when it comes to business sense. It’s really frightening because these are the people who invest in these half-ass CEOs, then wonder why the stock tumbled. Palm has a long history of missteps, it should have never gone this far, yet it continues with the Pixi. WTF? Soon, the CEOs will leave rich, the investors poor, and Palm will crawl into the future . . . like a slug.

  6. How does a cannibal lose weight?
    By only eating vegetarians.

    Hey, did you hear the one about the cannibal that passed his brother through the forest?

    “Hey”…the cannibal said….”What’s for supper…”

  7. “Soon, the CEOs will leave rich, the investors poor, and Palm will crawl into the future . . . like a slug.”

    And leaving millions of consumers, and ordinary Americans with obsolete, nearly useless, and nearly worthless handsets.

    That is why knowledgeable observers on MDN and other sites should expose loser CEOs, business plans, risky companies, and weak products. Not just name-calling fun, but protecting everyone against bad tech experience and unwise purchases/investments.

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