Maybe The Palm Pre Isn’t Selling So Well, After All
by Jason Kincaid on July 6, 2009

My, how time flies in the tech world. It was only one month ago today that the Palm Pre launched to the public, giving users their first chance to try out WebOS first hand. Critical response to the device was generally positive, though much of this stemmed from the phone’s impressive operating system rather than the hardware itself. Still, it was exciting to see a genuinely compelling product come out of Palm for the first time in years, and many of us viewed it as one of the first worthwhile competitors to the iPhone. And then the iPhone 3GS came out, selling 1 million devices in a single weekend.

Since then, the Pre has largely fallen under Apple’s shadow. But there have been murmurs that Palm has still managed to sell far more devices than most analysts were expecting — a recent report from Charter Equity Research analyst Ed Snyder suggests that Palm is still unable to meet demand, and that the company will ship one million phones to Sprint during the device’s first quarter in production. Today we’ve gotten a report that indicates that this may be pretty far from reality.

The report, which comes from JNK wireless consultant iGR, was conducted on July 3, during which the firm’s analysts gathered reponses from fifty Sprint stores (more than 50 were contacted, but some refused to participate). The results? Palm isn’t having any trouble keeping pace with demand.

None of the stores contacted had sold out of Pre and the majority had ‘plenty’ available. This compares with 8 percent of the stores contacted last week saying they had sold out of the Pre (down from 28 percent in Week 2 and 38 percent in Week 1). iGR’s channel checks clearly show that Sprint is meeting the current demand for the device with the inventories available in the stores.

The report also notes that stores are reporting a dropoff in the number of Pres being sold, with 40% of stores willing to discuss their volume sales reporting fewer than 10 sales this week. 33% of stores reported sales of 10-20 units, with 16% reporting 20-30. That’s per week. I’d be surprised if most Apple stores are seeing similar sales in a matter of hours.

Still, there are some bright points for Sprint and Palm. According to the report, a quarter of the stores contacted say that most Pres are being sold to new Sprint customers, which means the device is appealing enough to attract users away from their old carriers.

Obviously, these polls shouldn’t be viewed in terms of absolute figures — we don’t know exactly how many phones Palm has sold, and neither do the aforementioned analysts. But it sounds like Palm still has its work cut out for it to drive interest beyond its initial launch hype. What Palm badly needs at this point is a robust App Store, which has become one of the iPhone’s biggest selling points. Unfortunately, that’s a long ways off — Palm still hasn’t broadly released the webOS SDK to developers, which means users only have a small pool of around 30 applications to choose from, and that isn’t going to change any time soon.

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  • Well, I said it before, and I will say it again.

    Launching agaist iPhone 3GS is STUPID STUPID STUPID!!!

    And I do like the webOS UI.

    • Agreed, I think the timing of the launch was a mistake. I’m sure Palm would have launched earlier if it could have, though.

      • And then Apple would have announced the 3GS earlier…
        :-)

        • Except for the original iPhone, Apple hasn’t really pre-announced anything iPhone-related. And Apple had to pre-announce the first iPhone due to their need to file for FCC approval… I don’t think Apple is too worried about the Palm Pre or any other smartphone.

          • To me, both American Phones Apple iPhone & Palm Pre are Junk phones. I really wonder why people buy such junk.

            I mean can a European person imagine having a phone with no video or no real applications?

            Overheating iPhone without changeable battery is just so Lame American way of having a phone.

            And then that binding contract to ultimate slavery, wow! So Long Freedom!… in America that is!

          • Doesn’t everybody know that June is when new iPhones are released? 3 Junes in a row… C’mon.

          • “Badly needs” is vid rec in pre. iphone 3 has shown how it is a must.

          • @Junkyard Wars: Americans are still new to this smartphone thing. As such, they don’t really bother with specs or more “advanced” features. All they want to be able to do is surf, take pictures (quality doesn’t really matter), make/answer phone calls and listen to music (audio quality doesn’t matter either). That’s all. And easy download of apps (mostly games and time-wasters) is a plus. Nothing fancy except a fancy UI. And they don’t mind about the contract because they are used to it.

            The key is: be able to do very basic things fast and with ease. That’s all they want.

          • @Junyard Wars: What an arrogant twit you are. iPhone a junk phone? Please, it can do far more than any European phone simply based on the apps available, and its more powerful OS. Also, try staying up with things if you are going to post on a tech site – the new iphone has video, and is superior to any other video out there due to ones ability to edit it right in this hand held computer, oh, and it also has 10’s of thousands of apps available – with many of them being quite useful and not just games! And the whole thing about “overheating” has been dismissed as BS… so move on.

          • @ junkyard wars
            You my friend, are an idiot. First, Nearly every UK phone has a comperable US phone. Yes, alot of times Korea and smaller markets get new technology first because its easier to implement, but there are plenty of phones in the US market with the specs you listed, they just aren’t necessarily specs we as consumers are most interested in.

            And second, don’t pretend like the US is the only place with phone contracts. You don’t HAVE to have a contract to buy any of these phones, but you play a premium to get them. Go check O2s website. It works the same way. You pay full price for a phone with no contract, or you get heavy discounts for accepting a contract. Do a little homework before you come on the “interwebz” to throw down, or at least take your head out of your ass.

      • Look at the comments being made by Sprint’s excecutives. They expected “millions” of people to drop Apple and AT&T and embrace the Pre.

        Didn’t happen. But the timing was deliberate, set to capitalize on the end of the original iPhone’s two-year contract.

        Launch much earlier and all of those contracts would have had yet to end. Much later, and all of those potential new users would have already upgraded and be tied up in a new contract.

        From that perspective, they didn’t really have a choice.

        • If that was the big plan all along.

          Wow, some people are just delusional or easily hypnotized by Roger McNamee.

        • How did the Sprint execs expect that to happen when they knew they weren’t getting that many phones delivered? While Sprint may be having problems, I honestly don’t think they’re complete idiots who can’t do basic math.

          Something doesn’t jibe with this story.

        • Well the release date may have had more to do with the fact that Palms year end is at the end of March and they stated over and over that the release date would be in the second quarter. Releasing it a few days before iPhone announcement, release and the original iPhone contracts were more than likely an after thought.

          There is no way that Palm could have kept up with demand close to that of the iPhone and knew it. Even Apple is now stating that there maybe shortages in the near future do to supply problems. The fact is that Apple had those phones ready to ship when they announced, Palm didn’t. I really wonder how many people were put off by the fact that the phone wasn’t in stock.

          As far as this “study”, any study can be fixed to get the outcome you are looking for. All it would take is focusing on smaller markets or where Sprint has the lowest amount of members. Plus talking to a Rep on a phone is really going to give you great results. In most cases they will lie one way or another. I’m sure you could do the same with Apple stores and get the same results. For example I’ve been in both the local sprint stores and they were sold out with a waiting list they said was at around 30. Been to two Best Buys and they also were sold out with waiting lists. One rep at BB pulled out the list and it was around 5 pages and there seemed to be between 15 to 20 per page. I asked them if they had any iPhones and he pointed to one of the locked storage bins and said it was full. I would really be surprised if the Apple numbers are based on retail sells and wouldn’t be surprised if it was a million shipped.

    • The world was, is and will be dominated by the Iphone … there is 1 company that can steal the crown to apple … G-O-O-G-L-E, with a some kind of a new device like Iphone … could it be ?

      John
      http://www.encu...ntry/JobUsa.htm
      ————————————–
      USA Job Seeker

    • Yes Palm Pre Is The Best.
      And Sprint In Pittsburgh,Pa Sold Out Of The Palm Pre Device. And We Are Waiting For More.

  • a combination of bad timing and just the fact that apple is doing so well with the iphone OS is perhaps the palm pre. Seems like they are doing well with new customers though but i doubt old customers will be very keen on switching to the pre

  • Pre would’ve been a homerun if it had come out shortly after 3G, but well before 3GS. It has a great OS, but couldn’t compete with Apple’s offering.

  • hmm…. Pre is gonna have a tought time around… iPhone is almost becoming like Google for search… U need to put in loads of effort to beat them…. letz watch out…

    • Come on now. They have a little less than 20% of the smart phone market. That is not like Google! If the President starts wandering around saying he can’t live without his iphone I might buy this idea.

      • Actually, the latest independent numbers I can find,

        http://tinyurl.com/mmukcn

        have Apple at around 8% of worldwide smartphone sales, which would be FAR below even the 20% you are claiming.

        I know most Americans hate to see it this way, but America is not the largest, second largest, or even third largest mobile phone market in the world. What’s more, the iPhone is not “dominating” any market, no matter how you want to try and massage the numbers. Please, will people stop using the numbers from the one week a year they launch a new iPhone, and then pretending those sales figures hold steady all year long. The iPhone has yet to even beat WinMo in sales, much less RIM or Nokia.

        • Excuse me nitwit – The European Union is not a country so in fact the US is the third largest cell phone market. The EU is a cell phone mess because each country in the EU controls its own cell phone market making the EU a mobile nightmare and not a unified market.

    • Wrong comparison. The iPod is like Google.

    • Wrong comparison. The iPod is like Google.

  • When will Palm understand phones are just as much about a fashion statement as a cool tech gadget?

    AT&T coverage is horrendous compare to Verizon, but you still see millions of people willing to put up with it for a “hip” iPhone

    • agreed! the point is simple… It is not that the ppl who use iPhone(or any apple prods ) are cool…. it is because they use those stuffs thats y they are… ;)

      • Ray and Mayank:
        Don’t hate on iPhone people because they’re cool. The only difference between them and you is (1.) they don’t live in their parents basement, (2.) they’ve had at least one date with a real (non-vinyl) female, and (3.) they have real lives. Soon you’ll get your MSCE and then a real Job! (patching PC’s). From there, who knows!! YOU may be cool someday and have your own iPhone!

        • Zato:

          Ah, so the meaning of living independently, getting laid here and there and having real lives and a real job etc., is for an iPhone? and you call that ‘Cool’?

          Thats interesting!!

    • Phones aren’t about fashion *or* cool for many of us; they’re about *function.* The iPhone, for all its fashionable, cool nature, just isn’t functional enough; it requires iTunes, has no physical keyboard, and only does what Apple permits it to do. Palm has embraced a different philosophy, one which goes squarely up against the BlackBerry for small/mid-sized business as well as to longtime PalmOS users like myself. {ProfJonathan, aka PreLawyer}

    • while I do think that Verizon probably has a better network overall, ATT’s coverage certainly isn’t “horrendous”. Not even close.

  • How they are going to compete against iphone 3GS.?? I am yet to figure it out..!! From next time Palm at least try to work on your timing of your launch..!

  • Let’s also be clear: the iPhone is a great product – even though they missed the marketing boat on making a cosmetic change to 3Gs (Steve should know: it’s all about the packaging). So yeah, Palm does have a real uphill battle. Especially if iPhone Verizon gets in the game.

  • Also, lets keep in mind that it’s still exclusive to Sprint. How many do you think would sell if more people had the option to do so in the first place? The reason the iPhone sells so well is because it has a massive number of hardcore fanboys willing to do whatever it takes (including switching providers, paying outrageous early cancellation fees, and then paying a massive sticker price for the actual phone) to get their new apple iWhatever. Palm doesnt have this kind of die-hard fanbase, but I think if it were available to a wider audience, they’d move way more units.

    • if you’re switching then you’re a new customer and you are not paying “massive” prices. unless you consider 199 & 299 “massive” for a device like the iphone. and apple has sold many, MANY more iphones to non-fanboys than fanboys.

  • “Unfortunately, that’s a long ways off” If you consider before the end of summer to be a “long ways” then yes, I suppose that is pretty unfortunate.

    • I’d say late September is a ways off. And looking at the way the App Store worked, it’s going to take developers a while to get the hang of the phone. Granted, WebOS may be easier to code for than the iPhone is, but it’s going to take a long time for Palm to catch up to Apple.

  • locking to Sprint is a killer for me.
    also the one place Palm can innovate – handset form factor – is something they’re being cagey about (I’d like a compressed QWERTY / T20 slider rather than full keyboard, others would like a flip-phone … we’re not served by Apple so it’s a niche Palm could exploit)

  • From an international perspective, Palm made a terrible mistake by not announcing a launch date for Europe or Asia before the 3GS went to market. I would have bought a Pre had I known when to expect it. In the end, my money went to Apple – again.

  • I love my iPhone but to be fair, when I went to my local Apple store yesterday (07/06/09, they had plenty of 3G S so I don’t discount this report but I do come from an industry where statistics and numbers are always and definitely twisted around. I would really question this report. For example, where were the stores located (what region). What is the main service in the area, etc.

    I take these articles w/a grain a salt. That stated, not discounting it just realizing there are various factors always involved.

    DM

    • DM

      Palm was gunning for a shortage (artificial or not) similar to what Nintendo Wii had.

      And well, let’s just say the not too impressive weekly supply somehow managed to surpass the demand.

      On the other hand, Apple had been building up trackloads of iPhones since as early as April for the third grand launch. But still the demand exceeded it’s estimate. So the 3GS experienced a brief shortage across the nation.

    • I was also in an Apple store and while they had plenty of stock, they were also selling at least five an hour from what I could tell.

      However, I think the Apple store v Sprint store comparison is flawed. I’d guess there are 20 Sprint stores for every Apple store.

      • I thought the iPhone was also sold in ATT stores? What — oh yeah a little truth shouldn’t get in the way. Really now.

  • You cannot compare PRE directly with the iPhone 3GS

    Why? because it is not a GSM phone. As for the number of units the iPhone sold, how many of them were NEW subscriptons not Upgrades?

    • “… how many of them were NEW subscriptons not upgrades?”

      Doesn’t matter, as practically every one of the 2G/3G phones replaced by an upgrade will find itself in the hands of friend or family member, or sold on Gazelle or eBay.

      I suspect that less than 5% will simply disappear into drawers.

  • I didn’t buy my Pre from an actual Sprint Store for one big reason. Mail in rebate. MiR are horrid and I can’t stand them. That is why I walked a few store fronts down to Best Buy and got an instant rebate. No forms to fill out, no receipts to send in, instant savings.

    Perhaps the firm that made this inquiry should check with the other Pre vendors and see how their stock is.

    • These statistics may be skewed a bit since only sprint stores were mentioned in the article and not Best Buy which is where I bought my Pre as well. The three Best Buys close to me didn’t have any that weren’t pre-ordered already.

  • I love my iphone but I really do like the Pre and Web OS interface too. I did think about switching to sprint for the Pre and lowering my monthly plan fees but I love my apps too much. I love being able to sync my todo list onto the cloud with toodledo, accessing my webnotes with evernote and reading books on my kindle app.

    Now there’s a good chance a lot of the major apps will eventually come to the Pre if there is demand for it, but that’s the main problem with the Pre; I want my apps now and not buy a phone that has a good potential future. But I can’t slam them to hard for that, everyone needs to start somewhere right? I think Palm made a fantastic comeback but they really should have launched the Pre on all the major networks already.

    • Pre_1_Kicks_iPhone - July 6th, 2009 at 9:51 pm PDT

      They ALREADY have a playstation emulator, an emulator for all of the other (older) Palm software, etc…

      The SDK has not EVEN BEEN RELEASED yet.

  • “More than 50 were contacted, but some refused to participate.”

    Ok how many is some? Lets say 15 that’s 35 store, that accounts for less than 1% of available locations to buy PRE’s.

    We need a better research to find out or just wait until 07/29 Sprints 2Q report

  • I have felt from the beginning that the only reason there was any hype at all about the Pre is because Sprint consistently has a boring and has been selection of phones, and this was the first phone in ages that was even remotely exciting, and that Sprint customers were actually champing at the bit for. No one is leaving their carrier to go to Sprint to get the Pre.

    • Wrong. I did and several of my buddies did as well.

      Funniest part was most broke their AT&T contracts and sold thier iphones on ebay to do so.

      NEVER assume…

  • wahhhhhhhh a phone on one network is not selling as well as a phone on another network.

    whats the fanboy crap?

  • let’s keep in mind that the only people talking about the Pre is tech geeks and tech blogs. No matter how much inner circle buzz is generated by the two, the fact is that my Grandma knows what an iphone is due to LOCAL media coverage. you think smartphone – you think iphone. it’s not that regular people don’t consider the alternative.. they just don’t know anything about the alternative.

    • I don’t think so. Most people I’ve talked to think of the iphone as a media player and a phone, thus they find it more accessible then an actual smartphone.

  • Seems to me, the Palm Pre launch is going quite well. Remember the initial launch of the iPhone? Very similar story, as I recall. The PALM stock, however, has been priced for perfection and expectations are probably too high. I think that’s the real story.

    • the stock is up for 2 reasons – the 35% short interest and the huge insider ownership base. Roger McNamee & Co. know very well how to squeeze the shorts and stock higher and are making a lot of money doing so. it’ll crack one day, but probably not soon. that said, you’d have to be insane to own it here given lackluster sales reports like this one.

  • Damn, if this is true, then I probably own John Biggs lunch. Damn it.

  • I’ve registered for the Web OS SDK pretty early in the process. I haven’t received * a single email * confirming my registration nor any other sort of communication as to when they plan to accept registrations.

    Treating developers like this is like committing suicide.

    Apple does not exactly have a great track record when it comes to developer communication but their Developer Program worked perfectly well from the early Alpha days!

    That makes a difference.

  • Seriously though, does TC actually work for Apple? Sometimes I read articles like this one, and I think you are a secret marketing arm of the company?

  • Pretty soon they’ll be giving away the Palm Pre free when you sign up for new service at Walmart. All the rednecks will be carrying them.

  • I think APPLE is just so hard to beat. Good luck to them!

  • I’m sorry but burying the truth…

    “Obviously, these polls shouldn’t be viewed in terms of absolute figures — we don’t know exactly how many phones Palm has sold, and neither do the aforementioned analysts.”

    … is not cool. Is the quality of reporting on TC in step with the amount of VC?

  • Even though Palm was slow out of the gate, it appears that SDK access may be opening up. I just received access this last week so I have to assume others are as well. Like every platform, the key to success will be getting support from a large developer following. I just hope that Palm hurries up with opening the SDK to everyone as I think that is the key to their long-term success.

  • First off, Palm probably knows that the App store is a huge advantage and that they need to act as quickly as possible (these guys have ivy league MBAs so I bet they can read a market research paper). They just needed to launch the Pre anyhow to get the iPhone 2g renewers (still believe that’s a valid strategy whether it worked or not).

    However, I am not so sure whether the exclusivity deal works as well as it did for Apple. Sprint is not GSM and the Pre won’t work outside the US – that might be a huge disadvantage. Plus, people don’t like to switch. I know, many did for the 1st gen iPhone. But remember, when it came out it was cult not just a phone. It was the first of it’s kind. Today you have options, there are many that browse the web properly and do all the other things nicely.

    Other features might have been totally over-rated. Swappable battery? Well, all my laptops and cell phones (before my iPhone 2g) had that and I never ever used it, not 1 time in say 10 years and +10 devices. Physical keyboard? Maybe, if it’s really good, like BlackBerry-good. I tried the Pre’s keyboard and quite frankly prefer the virtual on the iPhone.

    Again, if they had launched a CDMA (Sprint & Verizon) and GSM version (AT&T & TMobile) at the same time, that would have been huge. They could have rolled it out internationally, too, all at the same time (or in short intervals).

    • O2 has picked it up (GSM version).

      People if you are going to Apple fan boys and bash the Pre — at least read up on your nemsis.

      ALso Pre will be on Sprint AND Verizon by the beginning of next year.

  • I have been trying since launch to get a Pre at Best Buy because I have some BB gift cards to use up. Every time I call or visit, I get the same story – sold out. Apparently the shipments are random, so no one can even give me an idea of when they will get some in.

  • Currently in Norway.

    Nobody offers the Palm Pre.

    I had been looking at getting the new iphone 3gS, but netcom.no has delayed the release of it.

    It was ment to come out 1st July and now they have it on sale 31st July.

    Read into that what you will, is it lack of demand, not enough stock, not enough profit on version 1?

  • Wait until the GSM version…

    CDMA + Sprint = formula for mediocrity.

    Once the GSM version hits Europe, I think the Palm Pre will begin to build the momentum it needs to make an impact.

    Case study: even though not actually viable unless hacked, the original iPhone had a staggering proportion of international sales (actually mentioned during a financial conference call – Apple was surprised).

    When the iPhone 3G arrived and became available internationally, that’s when the iPhone truly went stratospheric.

    My theory is that the international market has a better grasp on what makes a quality phone. The US market is literally under the control of its carriers.

  • you can’t beat iPhone with just a phone right now because when Apple launched iPhone they changed expectations. Touch Screen became the new cool, and a subtle brand for iPhone.

    Any new phone with a touch screen just reinforces iPhone even more.

    The same way if a Zune user uses white headphones, they are reinforcing the iPod brand.

    Nothing will dramatically replace touch screen as the new cool, so iPhone will own the best in class mindshare from here on in.

    Only way to defeat them is to hit below the belt. Like payoff/pressure the carriers not to subsidize the iPhone.

    I’d suspect that a certain software company could be tempted to employ a strategy like this.

  • Radio Shack is one of Sprints other retail partners and my local RS has yet to see one unit. I showed my Pre to the staff and they said none had seen a Pre until mine.

  • I tested the Pre in Sprint Store, and was very disappointed by the hardware speed. it’s simply too slow to use!
    Touch screen sucks. The operating system is quite cool. I’m waiting for their next gen.

    • The hardware is pretty much identical to the 3GS so I hope you aren’t an iPhone fan…

      • Actually yes the pre is surprisingly slow despite the same class of hardware of 3GS. The lag is very noticeable. I guess that’s just the price you have to paygor utilizing JavaScript under the hood.

  • The iPhone is going to be pretty hard to beat now. If you still have TV (and not gone off to the hulu/streaming world), then you will see commercials or pop ups telling you to download “this or that” app to get more information about a product or series. For example, I was watching Top Chef Masters on Bravo over the weekend and they had a pop up about an iphone app.

    No other phone will have an ad like this. I’ve never ever seen a “download an app for your blackberry, windows mobile phone” before this. Until I saw the ad on TV, it just hit me that Apple started this foot race late, they might not have the whole market share yet, but they are miles ahead of the competition.

  • I think a lot more Sprint customers would get a Pre if Sprint would let you use your Sero plan. I already have unlimited everything. They want to charge me more money for nothing! I was so excited to get one, oh well, sorry Palm.

  • I like iphone forever

  • Palm has one thing going for them – they wil be on at&t and Verizon by Q2 next year so a larger market share will have access to them. Not to mention getting a europe model out.

    People discount the desire for a functional device that is cheap. iPhone will command a higher price all around due to the sub the carriers are paying to lower the price so if the Pre get to $99 or less that just makes it appeal more to those users. If the core major apps are on both (all) platforms it always comes down to price.

    That is why Windows was 90% market share and Apple 8-9%. Apple’s biggest liability is themselves.

    In other news – 6 more days to the RIM Tour …

  • I tried a Pre at Best Buy and was thoroughly unimpressed. To consider it a true iPhone competitor is fantasy, period.

    Here’s a prediction: the Pre will be seen as a total failure one year from now, or less.

  • I was close to getting a pre, and still might, but found out it’s CDMA, not GSM. I don’t do a lot of international travel, but enough (2-3 x per year) that it would be a major annoyance to not have a phone overseas. That, coupled with thoroughly lackluster developer support (no email weeks after signing up for SDK) has really made me think twice about it. I may end up going with a 3gs, although I’m not crazy about it, but definitely want something newer in the next several months. If there’s a GSM Pre on the way soon I may hold out for that…

  • I called 105 Sprint stores randomly in San Fran, Boston, Orlando, Chicago, Virginia, DC, Philly, NY, and NJ last week. All had “many” for sale. 6 of 105 had a “short” waiting list. When asked how long is the wait list, 2 stores said I can get a Pre if I came to the store immediately (guess the wait list was really really short); the other 4 said I can get one this week.

    If you want to confirm yourself, use the Sprint store locator to get the store phone numbers. You can call the same or different cities.

    • The waitlist doesn’t obligate you to buy. So yes they have a “waitlist” — but the stores compete to get to “A” status — meaning if you are in the store ready to buy, they may pre-empt a waitlister if he/she doesn’t come in by a certain amount of time.

    • Wait..you care THAT much to actually call 105 stores? Must be an iphone user.

    • I just called 1000 Apple stores and they all had iPhones available. So I guess the iPhone isn’t selling very well. That’s essentially the logic that’s being used here folks.

  • The world would be such a boring place if the iphone was the only smart phone around, the cool factor is no longer cool as every man and his dog carries one. I say, Go Palm Pre and all the other smart phones out there!! Only competition will drive innovation.

  • When the most sensational Palm press is over a rumor that Dell might acquire it (slow news day thinking) then you have to wonder where Palm goes from here beyond niche market survival in the Sprint ecosystem.

    Also, there is recent press regarding QA/QC issues with the Pre… not that the iPhone was immune to this same effect but as one comment above pointed out — Palm is competing with the iPhone of today not the iPhone 1st gen.

  • Love ……….!!!! Iphone ..Palm …lol

  • There are a ton of critics of the palm pre who don’t even own the damn phone! The palm Pre’s key benefit over the iPhone… faster web search and a smoother… sleeker ui… is this subjective?… maybe the UI part but the phone is faster… but for functionality purposes: specifically pulling data from the internet as quickly as possible… palm pre wins hands down. Biggest pitfall of the pre is the app store… only about 40 apps… but this is sure to increase very soon… if you love consuming content from the internet I highly recommend the pre over the iphone 3gS

    • Pre_1_Kicks_iPhone - July 6th, 2009 at 9:50 pm PDT

      I don’t think its a pitfall. Palm did it right. Generate buzz, test out the apps platform, and smoothen out the way to mainstream applications.

      Palm is far more business friendly than Apple, so lots of good stuff to come. And the tragedy is that the iPhone is far from being a phone (the Pre actually fits into your pocket — nicely!)

  • Pre_1_Kicks_iPhone - July 6th, 2009 at 9:48 pm PDT

    You understand that the Pre is being sold in Europe to rave reviews? And that the Pre will be going to Verizon in Jan 2010? They will have locked up multiple carriers much faster than iPhone.

    What does that mean? Critical mass. On Sprint along they will have over 500,000 users. Add O2 and Verizon, you are looking at over 3-5M users. That is enough for a huge apps database (Palm is far more friendly to developers than Apple will ever be).

    And yes there is a Pre-GSM. Already released in Europe (GSM coverage sucks in the US. ask any iPhone users, how many times they can actually ues the Phone part of iPhone).

    And yes your iPhone costs $1200 more over the life of the contract. So that extra $1200 buys you a LOT of apps on the Sprint/pre platform.

    I find it interesting that in a 1.0 product Pre managed to even get so far with a 2 yr old Apple platform. Amazing.

    Also the best part is the wireless induction/magnetic charging. No idea why apple didn’t do that with the iPhone.

  • One more comment… do I believe pre will win the “smartphone wars” in terms of sales revenue… probably not… iphone has hit inflection point and there is likely no looking back… its a great piece of technology and will continue to sell even with a high quality device like the pre… we are reaching a point where there is less and less differentiation between smart phones… the first company to really wow in this niche space – Apple – will likely continue to dominate… the media hype leading up to the original iphone trumped the pre’s hype… and really being first of a kind didn’t hurt…. who knows though… we’ve seen market dominator companies who in the first couple years witnessed tremendous success, fail when a competitor came in and stole the market

  • one of the biggest problems is that people are just NOT GOING to the sprint store to get their “pre”s they are going to other retailers to get the device AND to avoid the whole $100 rebate that you have to do if you get it through a sprint store!

  • Palm Pre Is The Best.
    My Palm Pre Killed My Iphone3GS Wow.
    Sprint Store’s In Pittsburgh,Pa Sold Out Of The Palm Pre. We Are Waiting For More.

  • ALL IS IN THE MARKETING and the name of the company that made the product. If the Pre was from Apple and the iPhone from Palm, we would see the opposite in terms of sales.

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