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. Sorry, DJ, but you are overlooking the fact that Microsoft has actively insulted, derided and attempted to sabotage Apple since the 1980’s, not to mention outright lying. What’s good for the goose is good for the gander. Wasn’t it a few weeks ago when all the pro-Microsoft pundits were playing up Steve Jobs’ health? My, that’s a short memory you have.

  2. Relax people. Trashtalk is part of MDN’s charm. It’s not pretending to be nuetral journalism like CNET or Biz Insider, or 90% of what get billed as news on the web or on cable today – all just personal editorial. In fact I was hooked on this site by a story about walmart and all the hilarious stereotypes the commenters made fun of – low humor to get you thru the day – with the same gusto my Walmart loving Midwest relatives are proud of reckneck jokes.

    I say they should call the next version of the Pre(tender) the Pokey.

  3. @Radius, you’re missing the point by just a bit. When Steve’s health (unfortunately) became news, did you read stories calling him names? If we had, we’d be (justifiably) livid. I really feel like an old fart here, but MDN should realize that it has enough of an audience to warrant thinking about how it represents itself (and Apple) to the non-fanboys who come to visit.

    @MDN, be funny. Take your shots, but we all know you’re smart enough to do it without resorting to name-calling.

    That’s (more than) enough. Now I’m going back to holding my breath until 1:00.

  4. …does MDN feel the need to assume the Pixi has to be as cheaply put together as the Pre?

    It’s amazing how fast Palm got ANYTHING out the door with the Pre. The Pre is an accomplishment despite all its problems. So why would we assume Palm is incapable of accomplishing a LITTLE bit more the second time, and making the Pixi more solid and durable?

    Maybe the Pixi will be as bad as the Pre, but some improvement seems far more likely. How about we wait and see?

  5. @DJ
    Relax, take a breath, Unk Fester & the bunch will be fine…. we bash and personally insult these creeps cause they bash and personally insult the entire Mac using public with terms like Kool-Aid drinkers, and the like…. don’t know about you but I DO take it personally, and I shoot back.

  6. Uh, Palm isn’t lowering the $300 price; Palm and Sprint just increased the $100 rebate to $150. The Pre still costs $300. Sure, and “instant rebate” sounds like Palm dropped the price, but if the rebate ends, a Pre will cost you $300.

    An iPhone 3GS 16GB is $200. No stupid rebate hocus-pocus thingys required.

  7. @why on earth
    OK, go buy one, me i’ll wait for the new iPhone upgrade due out soon. If Pre was innovative it might have stood a chance, but it aint innovative! It’s just a new suit of clothes on what apple has already innovated. And as such…. it will fail.

  8. Speaking of trash talk, it’s time to start compiling a list of websites who are consistently negative toward Apple so that we don’t waste our time clicking on their sites. Here are some nominees:

    PC World
    TG Daily
    The Register

  9. @Cubert

    You have a bigger problem than weak jokes my friend. Mickey Mouse is going to kick your A$$ when he finds out about the copyright infringement. You saw what he did to the Jonas Brothers. [shudders]

    P.S. – Dear Sprint. I won’t even tell you what happened when I tried to shake my new Palm phone over my little sister. [shudders again] Not what Peter Pan had in mind.

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