Originally Posted by teckstud
It's a marketing stategy to entice penetration. The price will probably drop in a year or less to match Apple's. And later they'll move over to Veriizon, which is pretty smart.
I had Palmphones for years, starting with the first color models around, the Samsung i300 and i330, then the Treo 700p, so I'm not hoping that Palm will drown. I still use my Treo for some non phone functions, and have it right here on my desk.
But a lot of what I'm reading so far is just speculation about how well this will work. It's ver 1 hardware, and a ver 1 OS.
Palm has some time to get this selling enough, and hopefully, work out the bugs. I hope it will keep them afloat. But we shouldn't be under any illusions. This is an absolute requirement for them. If it doesn't do at least fairly well, and quickly, they're gone. Elevation Partners won't keep throwing money down the hole if it doesn't look as though they will get a positive return for once.
They may not get a year if it doesn't sell well enough, something that's not guaranteed. Even though sales will likely look good at first, it's got to sustain itself over the next 6 months at least. If sales tail off too quickly, and they will tail off after the first "must have" buyers get it, they may not have time left to introduce in on Verizon, who may not even want it then if it looks as though it's not doing well.
I'm really skeptical about this rebate. Sprint hasn't been good about rebates, and even though our milage will vary as they say, Sprint customer service isn't known for it's quality. As I say, I was with them for years.
If AT&T decided to do an iPhone Ad mentioning that the 8 GB iPhone cost $199 without a rebate as opposed to one for the Pre from Sprint, that could hurt the chance of the Pre. Many people are rightly skeptical about rebates of any kind these days.
If Apple comes out with new phones this summer, as expected, with double the memory for the same money, both Palm and Sprint will have a major problem.
You mention that the price will come down after a while, and normally, I'd say that is sounded about right. But it may have to drop 50% in the mid summer. That would kill any change of getting a profit from it for Palm, and possibly from Sprint as well.
I think this is really bad timing. The Pre should have been out for at least a couple of months already so as to not have to knock at the iPhone's door in June. A lot of people who might consider the Pre will wait instead to see what a new iPhone will be with its new OS upgrade. This could sharply cut into the Pre's first sales, which wouldn't have happened a couple of months ago.