iPhone v. Palm Pre Pricing

  • Posted: 08 June 2009 09:44 PM

    Hmmm…

    Palm Pre - $199 with 2-year contract and 8 GBs

    Apple iPhone - $99 with 2-year contract and 8 GBs

    Did Apple just screw Palm to the pricing wall?

         
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    Posted: 08 June 2009 11:39 PM #1

    DawnTreader - 09 June 2009 12:44 AM

    Hmmm…

    Palm Pre - $199 with 2-year contract and 8 GBs

    Apple iPhone - $99 with 2-year contract and 8 GBs

    Did Apple just screw Palm to the pricing wall?

    Yes, this was very bad news for Palm/Sprint imo.

         
  • Posted: 08 June 2009 11:50 PM #2

    Yes, but the Pre will appeal to the Crackberry users wanting a mechanical keyboard.  I don’t know how they manage; I tried the Pre’s keyboard and there’s no way it was going to work for me.

         
  • Posted: 09 June 2009 12:47 AM #3

    Not totally screwed until ATT offers up a $20 data plan (for $60/month), even capped to say 500 MB/month.

    As it is Sprint offers a better service deal than ATT for the same price, so I expect them to be status quo for awhile with Sprint having stopped the bleeding this quarter or next. I was a Sprint customer for 4 years, but left for Verizon because going to the Sprint Store was like going to the DMV, hell on Earth. Buying Nextel and the Store/customer experience looks to have chopped off an arm and leg! Maybe they are better now.

    And yeah, the Pre won’t make a dent in iPhone sales, but the smartphone pie is rising for everyone, so Palm should, hopefully, struggle on by, assuming that can fix their quality control issues.

         
  • Posted: 09 June 2009 01:31 AM #4

    Shrike - 09 June 2009 03:47 AM

    Not totally screwed until ATT offers up a $20 data plan (for $60/month), even capped to say 500 MB/month.

    As it is Sprint offers a better service deal than ATT for the same price, so I expect them to be status quo for awhile with Sprint having stopped the bleeding this quarter or next. I was a Sprint customer for 4 years, but left for Verizon because going to the Sprint Store was like going to the DMV, hell on Earth. Buying Nextel and the Store/customer experience looks to have chopped off an arm and leg! Maybe they are better now.

    And yeah, the Pre won’t make a dent in iPhone sales, but the smartphone pie is rising for everyone, so Palm should, hopefully, struggle on by, assuming that can fix their quality control issues.

    Still, no real app store. iPhone owners save $100 on the purchase of a 3G iPhone vs. a Pre and have access to tens of thousands of no cost/low cost apps and can purchase apps via of iTunes and through the use of the ubiquitous iTunes cards, available at most major supermarkets and other retail outlets.

         
  • Posted: 09 June 2009 08:41 AM #5

    John Paczkowski over at all things D:

    Palm (PALM) picked a hell of a day to launch the Pre. 2 days before Apple?s World Wide Developers Conference.

    ...

    Said CL King & Associates analyst Lawrence Harris, ?Apple?s strategy appears to be designed to take advantage of the current limited availability of the Palm Pre. It is clear that Apple intends to maintain its leadership position in the smartphone market, given its decision to cut prices.?

    Clear too that Palm?s decision to roll out the Pre this past Saturday was folly and has not only left the company?s most important product release in years washed away in a deluge of Apple coverage, but allowed a powerful rival with a lot of market buzz to undercut the price of its bet-the-company handset within just days of its launch.

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  • Posted: 09 June 2009 10:09 AM #6

    They calim to have sold 50,000 units this past weekend. But I’m betting that most of those were upgrades for eligible Sprint customers. If you were switching from another cell provider, or if this was to be your first cell purchase/contract. would you pick Pre/Sprint or iPhone/ATT? I thibnk the answer is clear.

         
  • Posted: 09 June 2009 12:54 PM #7

    The Palm Pre ($199) will do well enough to prove a success for Sprint. Sprint service plans are considerably cheaper than AT&T, so the price point difference between it and the iPhone 3G is mute.
    - Sprint:  I believe $99 for unlimited voice, data, and text
    - AT&T:  I believe $99 unlimited voice, $30 unlimited data (will increase for tethering), $10 for 200 text messages… then add the international calling and text)... AT&T services are astronomical and not attractive for many.

    On top of this everyone hates one network or another, there are many who vow never to “return” to AT&T. So all said, Sprint have a decent market to penetrate and the Pre looks to be a great device. If you take the iPhone out of the picture, Palm seem to have done a bang-up job.

    I wish them luck… competition is a good thing.

         
  • Posted: 09 June 2009 01:01 PM #8

    spudgeek - 09 June 2009 03:54 PM

    - Sprint:  I believe $99 for unlimited voice, data, and text
    - AT&T:  I believe $99 unlimited voice, $30 unlimited data (will increase for tethering), $10 for 200 text messages… then add the international calling and text)... AT&T services are astronomical and not attractive for many.

    I think most iPhone users have the $72/month plan. 450 daytime minutes, 500 weekend and evening, free calls to other ATT mobile numbers, unlimited data and no texts ($5-10 extra for texting if you’re a teen). ATT will surely charge more for tethering, but there are rumors of cheaper plans with fixed data amounts.

         
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    Posted: 09 June 2009 01:15 PM #9

    spudgeek - 09 June 2009 03:54 PM

    The Palm Pre ($199) will do well enough to prove a success for Sprint. Sprint service plans are considerably cheaper than AT&T, so the price point difference between it and the iPhone 3G is mute.
    - Sprint:  I believe $99 for unlimited voice, data, and text
    - AT&T:  I believe $99 unlimited voice, $30 unlimited data (will increase for tethering), $10 for 200 text messages… then add the international calling and text)... AT&T services are astronomical and not attractive for many.

    On top of this everyone hates one network or another, there are many who vow never to “return” to AT&T. So all said, Sprint have a decent market to penetrate and the Pre looks to be a great device. If you take the iPhone out of the picture, Palm seem to have done a bang-up job.

    I wish them luck… competition is a good thing.

    I wish them luck, and think it is a great device for people who want a smart phone on Sprint, Sprint needed to do something because they were bleeding users.  Apple launched with ATT and is now suffering through the good & bad of that relationship.  ATT’s pricing compares favorably with Verizon whom I assume they think is their real competition so until Verizon launches a device which starts taking users from ATT they will sit and make profit off of Apple’s exclusive deal.  As far as the price goes Apple is setting the standard for smart phones which all other carriers/phones are attempting to compete against.  I’m sure Palm wanted to charge more, but had to try and match the subsidized price.  As far as ATT service goes, it is very location dependent and I think you misrepresent cost.  What do you pay for data tethering on the PRE?  Oh not available yet.  What does an international roam cost on the PRE?  Oh not available PRE is a CDMA phone and most of the world is GSM.  Also 200 text is $5 unlimited $20, So if you don’t need unlimited everything the price difference of 450 minute plan unlimited data and 200 text is about the same and with ATT update to 7.2 Mbps should be faster then Sprint.

         
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    Posted: 09 June 2009 01:21 PM #10

    willrob - 09 June 2009 04:01 PM

    I think most iPhone users have the $72/month plan. 450 daytime minutes, 500 weekend and evening, free calls to other ATT mobile numbers, unlimited data and no texts ($5-10 extra for texting if you’re a teen). ATT will surely charge more for tethering, but there are rumors of cheaper plans with fixed data amounts.

    More and more people in my circle, both business and friends/family are getting iPhones. Consequently we benefiting from the AT&T to AT&T calls. My sister experienced the halo effect after getting her iPhone and switched to Macs getting a MacBook Pro and and an iMac.

    Texting I usually hate, but my wife and I exchange texts because cell service inside her place of work is iffy. Strangely while she sometimes has to go outside to make a cell call she can send/receive texts. She works on Coronado Island, across the bay from San Diego, and there is no cell tower on the island. A few weeks ago we ran into an AT&T “Suit” who said that they were putting up some new equipment on one of San Diego’s downtown high rise buildings to serve Coronado and that we soon should have no cell service problem at her work.

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  • Posted: 09 June 2009 01:51 PM #11

    Sir Harry Flashman - 09 June 2009 04:21 PM

    Texting I usually hate, but my wife and I exchange texts because cell service inside her place of work is iffy. Strangely while she sometimes has to go outside to make a cell call she can send/receive texts. She works on Coronado Island, across the bay from San Diego, and there is no cell tower on the island. A few weeks ago we ran into an AT&T “Suit” who said that they were putting up some new equipment on one of San Diego’s downtown high rise buildings to serve Coronado and that we soon should have no cell service problem at her work.

    In the meantime, believe it or not, twitter works great as a texting substitute. Sure, you won’t get the message without checking, losing a little immediacy, but DM’s in twitter can be a pretty effective bypass around texting.

         
  • Posted: 09 June 2009 02:57 PM #12

    spudgeek - 09 June 2009 03:54 PM

    The Palm Pre ($199) will do well enough to prove a success for Sprint. Sprint service plans are considerably cheaper than AT&T, so the price point difference between it and the iPhone 3G is mute.
    - Sprint:  I believe $99 for unlimited voice, data, and text
    - AT&T:  I believe $99 unlimited voice, $30 unlimited data (will increase for tethering), $10 for 200 text messages… then add the international calling and text)... AT&T services are astronomical and not attractive for many.

    On top of this everyone hates one network or another, there are many who vow never to “return” to AT&T. So all said, Sprint have a decent market to penetrate and the Pre looks to be a great device. If you take the iPhone out of the picture, Palm seem to have done a bang-up job.

    I wish them luck… competition is a good thing.

    I think you mean moot. smile

    I have an original iPhone and pay AT&T $58/mo for unlimited data but the minimum of daytime voice minutes.

         
  • Posted: 09 June 2009 03:10 PM #13

    Just wanted to remind everyone of this quote from everyone’s favorite Roger McNamee:

    June 29, 2009, is the two-year anniversary of the first shipment of the iPhone. Not one of those people will still be using an iPhone a month later. Think about it—if you bought the first iPhone, you bought it because you wanted the coolest product on the market. Your two-year contract has just expired. Look around. Tell me what they’re going to buy.

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  • Posted: 09 June 2009 03:21 PM #14

    rattyuk - 09 June 2009 06:10 PM

    Just wanted to remind everyone of this quote from everyone’s favorite Roger McNamee:

    June 29, 2009, is the two-year anniversary of the first shipment of the iPhone. Not one of those people will still be using an iPhone a month later. Think about it—if you bought the first iPhone, you bought it because you wanted the coolest product on the market. Your two-year contract has just expired. Look around. Tell me what they’re going to buy.

    LOL

    I WANT a new 3GS, but I’m waiting for my non-replaceable battery to die, so I have an excuse.  Darn that battery…it was supposed to be SUCH a problem!  LOL  LOL  LOL

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  • Posted: 09 June 2009 03:50 PM #15

    sstenner - 09 June 2009 06:21 PM
    rattyuk - 09 June 2009 06:10 PM

    Just wanted to remind everyone of this quote from everyone’s favorite Roger McNamee:

    June 29, 2009, is the two-year anniversary of the first shipment of the iPhone. Not one of those people will still be using an iPhone a month later. Think about it—if you bought the first iPhone, you bought it because you wanted the coolest product on the market. Your two-year contract has just expired. Look around. Tell me what they’re going to buy.

    LOL

    I WANT a new 3GS, but I’m waiting for my non-replaceable battery to die, so I have an excuse.  Darn that battery…it was supposed to be SUCH a problem!  LOL  LOL  LOL

    Exactly.  What features now differentiate the Pre from the iPhone:  multitaking, user-replaceable battery, and keyboard.  My take on these below:

    As for multi-tasking, honestly outside of the Technorati and hardcore geekdome, it’s just not an issue for most people.  I think it would be nice but it not a real problem for me either.

    The non-user replaceable battery in a cellphone is also a non-issue for most everyday users.  Most of us can get 5 - 8 hours on a single charge and then plug it in and charge it either at home, at the office or in the car.  This is an issue only for the small percentage of true “road warriors” that need to be able to pop a spare battery into their cell phones.

    As for the keyboard.  Again a non-issue for most casual texters/e-mailers.  Especially if you’ve never gotten used to a hardware keyboard.  I know I was highly frustrated at first with the iPhone keyboard (to be fair I had trouble with a Blackberry keyboard as well but it was a bit easier).  After 2 month or so of struggling with the iPhone virtual keyboard, I finally “got it” and am now a pretty decent thumb typer.  I can almost keep up with my 14 year old daughter on her Blackberry.  I’m pretty proud of that. wink  I find that I do a significant amount of e-mail on my iPhone and I text 1,000,000% more than I used to due to the ease of texting on the iPhone.(I think I sent no more than a dozen total texts before my iPhone and now send a dozen a day).

    Anyway, while I like McNamee’s enthusiasm for the Pre and his Jobs-like approach to it, I think he’s dead wrong about all those original iPhone user switching to the Pre.  And he gives the reason himself.  All those early adopters of the original iPhone want to have the coolest phone around.  PERIOD.  Cost be damned.  They bought the original iPhone unsubsidized in June 2007, they then bought the subsidized iPhone 3G in 2008 and now they’re going to buy the iPhone 3G S in 2009.  They don’t care about their contracts and if the Pre was that much cooler and better they’d buy out of AT&T and be onto Sprint in a heart beat.  And many may.  The Pre is the “new hotness” to them.  But that is not the market the iPhone is going after.  The iPhone is the smartphone for the rest of us. 

    McNamee in all of the Jobs-like actions forgot the main Jobsian axiom:

    “Skate to where the puck is going to be.”

    Phil