Tag Archives | Palm

Sprint: The Pre is on Sale. No, Wait, Forget It!

Pre PriceWell, this is weird and embarrassing: All Things Digital’s John Paczkowski, who reported earlier today on a $100 discount for new Sprint customers who bring their phone numbers from another carrier that brought the final price of the Palm Pre to $99, has posted a new story saying that Sprint has decided to pull the offer a few hours after it announced it. The deal was supposed to last through October 10th; instead, it turned into an Incredibly Limited Time Offer.

Sprint is saying that it’s yanking the promotion because it was “put into the system in error,” but there’s just gotta be more of a backstory here.

Paczkowski notes that the offer is still live on Sprint’s site–and yup, it’s still there as I write this.

Pre Offer

The whole story points out a basic issue with the Pre: By introducing the iPhone 3GS at $199 (with a two-year contract) and knocking the original iPhone 3G down to $99, Apple succeeded in making the $199 Pre (which has 8GB of memory vs. the 3GS’s 16GB at that price point) look a tad pricey. I imagine it’s inevitable that Palm will need to release a 16GB Pre for $199, or work with Sprint to get the price of the 8GB down to $99. Or both.

I continue to find the Pre to be the most impressive iPhone rival that’s actually on the market–upcoming Android phones could change that–and to hope that it’s a hit, both because it deserves to be one and because Apple needs the competition. For what it’s worth, I’ve been surprised by the number of folks I’ve encountered lately who have bought Pres recently–and all of them have told me they’re pleased with their purchase. Of course, I live in a hotbed of phone geekery, so my random encounters with Pre owners may or may not be representative…

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Analysts call for Microsoft to drop the Zune

Zune GraveyardMarketWatch published a story today that could light a fire under Microsoft’s shareholders: it all but wrote an obituary for the company’s Zune portable media player. However, I do not think that the Zune is on the chopping block–yet.

Sales for the Zune dropped 42% over the last quarter to $211 million, according to Microsoft’s Q4 financial reports. In comparison, Apple iPod sales declined just 11%, for total sales of $1.5 billion, MarketWatch reports.

In terms of market share, the best-case scenario cited in the report was an IDC survey from last fall that found that the Zune holds 4.8% of the market. Recent numbers for the NPD group lower that estimate to a dismal 2%, compared to 70% for the iPod.

Microsoft is expected to ship the Zune HD, a touch screen interface device that offers high-def video output and radio, in the fall. Sales will likely continue to falter until then.

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A Pre for Under a Hundred Bucks? Good Deal!

bestbuypre[UPDATE: As noted in the comments, Best Buy is saying this is an error. I still think we’ll see a $99 Pre before too long, though…]

PreCentral.net is reporting that Best Buy is living up to its name by offering Palm’s Pre smartphone for $99.99 with a two-year contract–no rebate paperwork required. That’s $100 less than the previous price, which you’ll still pay if you buy a Pre from Sprint (and which you’ll only get after you apply for and receive a $100 rebate). We don’t know whether Best Buy’s new price is permanent, or whether Sprint will match it soon, but it seems like a good bet that it’s the price that the Pre will ultimately end up at.

Only Palm and Sprint really know how well the Pre is selling, and whether it’s living up to their initial expectations. But I don’t think the 50% discount a few weeks after the Pre’s release is a sign of panic on anybody’s part. When Apple cut the price for the iPhone 3G to $99 two days after the Pre debuted in stores, it pretty much set $99 as the new starting price for a smartphone with specs comparable to those offered by the Pre, and there was nothing Palm could do about it. At $199, the Pre looked a tad pricey compared to an iPhone 3GS with twice the storage and video recording, even though it had more RAM and a keyboard. At $99.99, however, it costs…exactly what you’d expect.

You gotta think that part of Palm’s response to the iPhone 3GS will be a Pre that matches some of its features–especially the starting storage capacity of 16GB–and which can be sold for a similar price. Best Buy’s price cut might even be a sign that the new model will arrive soon. One way or another, I hope that the Pre sells well enough to be considered a major success: It’s an excellent and innovative phone, and even iPhone owners will benefit if Apple has plenty of healthy competition.

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Palm to Apple: Block This!

Pre Disguised as iPhone

Last week, Apple blocked the technique that Palm was using to let the Pre sync seamlessly with Apple’s iTunes. I assumed that it was game over. Wrong! Palm released WebOS 1.1 today, and among its new features is the ability to sync with iTunes 8.2.1, the version of Apple’s media software that foiled the earlier version of Palm’s Media Sync feature.

There’s an interesting technical backstory here, though we don’t yet know what it is. Did Apple do an insufficient job of making it tough for the Pre to sync? Did Palm figure out an entirely different method for accomplishing a similar end result? If Apple blocks Palm’s new approach, will Palm strike back with workaround #3? Is it possible for Apple to make utterly sure that non-Apple devices can’t sync with its software? I’m assuming/hoping that folks who know more about this stuff than I do (such as Jon Lech Johansen) will soon tell us what’s going on.

I said in my earlier post that I had trouble summoning righteous indignation over Apple’s anti-Pre tactics. I still do. But if this is going to turn into a cat-and-mouse game, I’m rooting for the rodent–which is plucky Palm. Although I still think that the best all-around solution would be for Apple to open up iTunes so that owners of the Pre–and other devices–could easily give Apple money for music, too. Who wouldn’t be better off if such a scenario came to pass?

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Apple to the Pre: Your Masquerade is Over

Pre Disguised as iPhoneFile this one under Utterly Unsurprising News Stories: Apple’s new version of iTunes blocks the technique that the Palm Pre was using to provide seamless of music and video with the Apple application. That was, of course, by far the likeliest scenario all along. Pre owners can sidestep Apple’s move by keeping with the old version of iTunes for the moment, but long-term, the Pre’s iTunes syncing–which was accomplished by tricking iTunes into thinking the Pre was an iPod–is dead.

I know it would be better for consumers if Apple opened up iTunes enough to let the Pre and other non-Apple devices sync with the application. (It might even be better for Apple, since it would help it sell music to folks who don’t own its music players and phones.) But given that iTunes isn’t designed to sync with other companies’ devices, I can’t be bitterly angry at Apple for cutting off Pre owners. Or at least this ranks pretty low on my list of things to be irked at Apple about.

I remain a little mystified by Palm’s actions to date, since the company used iTunes syncing as a selling point, even though it’s run by smart people who knew that Apple probably wouldn’t stand for it. There’s a a pretty obvious step it can take now, if it so chooses: release a piece of software for Windows and Macs that handles the iTunes syncing that it’s been doing directly. It can license the technology if it needs to. It may not be morally obligated to do something like this–at the moment, the Palm site still touts iTunes sync and uses fine print (in light gray type) to say it may not work forever:

Palm Pre Fine Print

…but I still think it would be classy on Palm’s part. Maybe it’s been planning to do something like that all along.

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Is the Palm Pre Robust Enough?

Internet forums are atwitter about Palm Pre build quality issues. The revelation that the Palm Pre might be shoddy could not come at a worse time for the company, as it struggles to find sure financial footing.

A comment left at Palm enthusiast Web site Precentral.net sums up many of the quality problem that early adopters claim to be experiencing:

“Im [sic] on my THIRD pre (yellow box). Over the last two weeks, i’ve noticed an increasing amount of play with the screen. I’ve also noticed that on the left side of the device the two sections are separated enough that i can almost see the innards. When I push them together, you can hear squeaking. On top of that, the device came with a loose power button that doesn’t click nearly as firmly as that of other devices.”

Last week, RBC Capital analyst Mike Abramsky estimated that Palm has sold 150,000 Pre units so far. That is not as widely successful as the iPhone 3GS, but it’s a promising start. However, the Pre’s promise might fall short if it gains a reputation for being unreliable.

The iPhone is stiff competition, but Palm faces an additional challenge from RIM’s Blackberry Tour and new Android phones. Palm’s acclaimed WebOS operating system cannot keep pace on unreliable hardware. Meanwhile, Palm’s stock has become a new favorite of short sellers due to its dismal earnings report last week and lack of guidance about future Pre sales. Palm’s Pre could be its last best hope, but the company still has a huge challenge in front of it.

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