iPhone v. Pre (Revisited)

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    Posted: 04 August 2009 04:07 PM #61

    Verizon Wireless, along with some online stores who are selling Sprint’s Palm Pre, are cutting smartphone prices to $99 in the wake of Apple (NASDAQ: AAPL) and AT&T’s move to slash the price of its older iPhone 3G to $99, after it debuted the newer 3G S model last month. AT&T (NYSE:T) is the exclusive carrier for the iPhone series.

    The nation’s largest mobile carrier, Verizon (NYSE: VZ), quickly cut the BlackBerry Storm to the $99 price point a few weeks ago. Now, it’s dropped the price of most of its handsets to $99 as well—including the HTC Touch Diamond, Touch Pro and Samsung Omnia.

    Its most recent models, however, such as Research In Motion’s (NASDAQ: RIMM) BlackBerry Tour and the Samsung Saga, still bear the traditional $199.

    The phone prices all require signing a two-year Verizon contract.

    Verizon’s not the only one dropping its prices. Starting today, the Palm Pre (NASDAQ: PALM) is being sold at some online stores for $99. For instance, while mobile vendor LetsTalk.com lists the Pre at $299, it’s offering an “instant discount” of $100 along with a mail-in rebate for the same amount—bringing the price to $99, in line with the 3G./

    Linky

         
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    Posted: 10 August 2009 06:10 PM #62

    TanToday - 04 July 2009 02:36 AM

    All of the above may be true, but aren’t we in APPL to make $$$ ?

    Six months, relative performance AAPL vs PALM

    TanToday was wondering if your still holding Palm?

    From Business Week

    The modest sales performance for the Pre, which sells for $199 with a two-year contract from Sprint Nextel (S), is raising questions about Palm’s ability to land other wireless carriers to offer the phone, and how large the carriers’ subsidy payments and marketing support for the Pre might be. “Some carriers will be looking through less rose-tinted spectacles than before, [and] expectations will be pushed back” for the Pre, says Neil Mawston, a director with tech consulting company Strategy Analytics. “If Sprint can’t prove that the Pre is an iPhone killer, it’ll really affect the level of subsidies” carriers pay to make the Pre cheaper in stores.

    The Pre attracted fewer new customers to Sprint than RIM’s BlackBerry Storm did for Verizon, according to Matt Thornton, an analyst with Avian Securities who surveys U.S. wireless retail stores monthly. Verizon Wireless has a close relationship with RIM and has extensively advertised the Storm. Later this summer, Verizon is expected to introduce the BlackBerry Storm 2, which could echo the success of the first-generation device.

         
  • Posted: 11 August 2009 01:13 AM #63

    For anybody who follows Trader Vic….

    On the daily chart PALM broke the uptrend on 7/14, failed its test of the high on 8/4, and is on the verge of busting below the recent low of 13.60.

    Not sayin’ its going lower, but I am sure not buying this dog.

         
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    Posted: 14 August 2009 09:21 AM #64

      Via Barrons

    August 13, 2009, 11:50 am
    Palm Reportedly Cuts Pre Production Plans
    Posted by Eric Savitz
    The best days for the Palm (PALM) Pre may already have past. That was the implication of the Sell call on the stock this morning from Morgan Joseph - and the same theme can be found in a similarly bearish note this morning from Collins Stewart analyst Ashok Kumar.

    Kumar says that despite being positioned as a flagship product at Sprint (S), Palm shipped under 300,000 units in May and June. He says the company ramped up production aggressively in July when shipments exceeded build levels in the previous two months, but that the ?momentum appears to have already peaked.? And here?s the punch line: Kumar contends that ?due to weakening demand,? Pre production levels for the remainder of the year have been chopped by 500,000 units. (How he knows this, Kumar does not say.)

    Kumar, who does not have a rating on Palm shares, concludes in his note that ?the long-term prognosis for Palm is unclear.?

         
  • Posted: 14 August 2009 10:01 AM #65

    The market will shortly rumble what I think potential suitors quickly discover: that the Pre is a Linux smartphone with an open source based HTML 5 capable browser supporting only web apps, and a fairly slick UI. Basically, Palm has a small castle with no moat in the redefined mobile market. Most likely Palm will go the way of Crocs. There was a chance it might be a popular fashion item for a couple of years, but even that is now fading.

    To me the only possible remaining suitor is Vodafone. Apple is already into diverse mobile services on a bigger scale than the carriers, who are clinging onto their voice monopoly lifeline. But I very much doubt if Vodafone management has either the objectivity to see this or the ability to execute a transition to the “voice is just one small service” mobile internet future.

    The other viable future I see for Palm is “the geek’s phone” if they deliver a good enough UI experience on a platform explicitly open to arbitrary software development.

    [ Edited: 14 August 2009 10:05 AM by sleepytoo ]      
  • Posted: 16 August 2009 03:53 PM #66

    sleepytoo - 14 August 2009 01:01 PM

    The other viable future I see for Palm is “the geek’s phone” if they deliver a good enough UI experience on a platform explicitly open to arbitrary software development.

    I don’t see that happening. Both Palm and its current exclusive carrier need a big product hit. Sprint needs to not only slow the pace of defections to the iPhone, it needs to gain some ground in the lucrative smartphone market. Palm needs rich margins to support the company’s capital needs and continue product development. I don’t see Palm moving to an open platform (that’s too much like competing with the Android).

    Licensing might be the best option if the company desires to remain independent and generate the revenue needed for product development.

    Otherwise, the company might be best advised to prepare to sell to the highest bidder.

         
  • Posted: 24 September 2009 07:05 PM #67

    Verizon have decided NOT to take the Palm Pre.

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  • Posted: 24 September 2009 07:47 PM #68

    rattyuk - 24 September 2009 10:05 PM

    Verizon have decided NOT to take the Palm Pre.

    Given today’s market wide drop, it’s hard to see if this news has effected Palm’s stock price. Might get a better idea tomorrow, for this is certainly a major blow.

         
  • Posted: 25 September 2009 04:29 PM #69

    rattyuk - 24 September 2009 10:05 PM

    Verizon have decided NOT to take the Palm Pre.

    Savitz at Baron’s has updated this story with comments from Palm management.  They have reaffirmed all planned product and carrier introductions.  And several analysts are saying the Verizon linkup is on. 

    So it is now clear as mud.

    Meanwhile Amazon is selling the Pre for $99.  Looks like there is inventory out there.

    [ Edited: 25 September 2009 04:32 PM by capablanca ]      
  • Posted: 25 September 2009 04:31 PM #70

    sleepytoo - 14 August 2009 01:01 PM

    The market will shortly rumble what I think potential suitors quickly discover: that the Pre is a Linux smartphone with an open source based HTML 5 capable browser supporting only web apps, and a fairly slick UI. Basically, Palm has a small castle with no moat in the redefined mobile market. Most likely Palm will go the way of Crocs. There was a chance it might be a popular fashion item for a couple of years, but even that is now fading.

    To me the only possible remaining suitor is Vodafone. Apple is already into diverse mobile services on a bigger scale than the carriers, who are clinging onto their voice monopoly lifeline. But I very much doubt if Vodafone management has either the objectivity to see this or the ability to execute a transition to the “voice is just one small service” mobile internet future.

    The other viable future I see for Palm is “the geek’s phone” if they deliver a good enough UI experience on a platform explicitly open to arbitrary software development.

    I don’t disagree as far as this goes.  But Palm should, even must, have another product in the works.

         
  • Posted: 26 September 2009 03:23 PM #71

    WalMart has dropped the Pre to $79.99 (with contract and purchased of 200 lbs of ground beef)

         
  • Posted: 26 September 2009 04:08 PM #72

    willrob - 26 September 2009 06:23 PM

    WalMart has dropped the Pre to $79.99 (with contract and purchased of 200 lbs of ground beef)

    I just checked the WalMart site and did not find that deal. However, the iPhone pages look nice.

         
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    Posted: 30 September 2009 06:21 AM #73

    Palm Updates Pre to 1.2: No iTunes, No Paid Apps

    “Palm chose not to fix their now-broken syncing with iTunes in the wake of getting slapped down by the USB Implementers Forum, which recently reprimanded Palm for making the Pre masquerade as an iPod. That means you have to turn to Windows Media Player or to third-party solutions to sync your music, such as the freeware iTunes Agent or Mark/Space’s The Missing Sync.”

    http://www.pcmag.com/article2/0,2817,2353460,00.asp


    so, have palm given up or do they have another trick up their sleeve?

         
  • Posted: 30 September 2009 07:22 AM #74

    the-irish-guy - 30 September 2009 09:21 AM

    so, have palm given up or do they have another trick up their sleeve?

    Technically they should write their own Application to synchronize with the data contained within iTunes XML database as per other companies who wish to allow their products to connect to iTunes data.

    This is a much better approach than attempting to spoof their product to be an Apple product, which was a pretty dreadful hack at the best of times.

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