“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.