Palm to Price Itself Into Oblivion? [UPDATED]
by John Paczkowski
Posted on January 8, 2009 at 12:27 PM PT
Well, Palm bet the company on a new handset today. It’s called the Palm Pre, though given the company’s faltering business, a better name for it would have been the Palm Hail Mary. It features a touchscreen, as well as a QWERTY keyboard that slides out from underneath a large touchscreen. Also on board: a 3-megapixel camera with flash. A nice addition. It supports EvDo, Wi-Fi, GPS and Bluetooth. And it runs on a brand new operating system called Web OS, for which the UI boasts more than a handful of Apple-esque design flourishes.
By all appearances, the Pre is a slick little device. But is it formidable enough to stand its ground next to Apple’s iPhone, Research in Motion’s (RIMM) BlackBerry and the groaning board of Android devices currently in the handset market product pipeline? Palm (PALM) certainly seems to think so. In fact, the company is so confident in the Pre that CEO Ed Colligan seems to think it won’t need a sub-$200 price point to pull share from Apple (AAPL), et al. “Why would we do that when we have a significantly better product,” he asked ATD’s Peter Kafka earlier this afternoon.
Well, here’s one reason: To stay in business. Because despite Colligan’s claims of a “significantly better product,” Palm hasn’t raised the smartphone bar much (if at all) with the Pre. In fact, the device is as noteworthy for the features it may not include as for those it does. Absent from today’s grand unveiling was any mention of video. Also missing was a rival to Apple’s App Store and the robust developer-consumer ecosystem Apple has created around the iPhone and iPod touch. Even Google’s (GOOG) Android OS debuted with that. And the name; well, “Pre” isn’t likely to do very much for Palm’s already much diminished brand recognition.
Now, perhaps video and an app store are coming. But even if they do, will the Pre really be worth paying a premium for, as Colligan suggests? I’m not so sure–especially when the inevitable updates to the iPhone and BlackBerry remove the few advantages it does have over those devices. “Fast Web browsing” and “efficient multitasking” just aren’t big differentiators anymore.
That magnetized conductive charging platform sure is nice, though.
UPDATE: Turns out Palm is planning an App Store rival. According to the Pre press release, “The platform’s flexible environment will also allow developers to distribute their applications over-the-air via an on-device Palm application store.” And though no mention was made of video during Thursday’s Pre unveiling, the device will support it–both on the device and streaming. Said a Palm spokesperson, “The Pre has video playback, including YouTube video from the internet.”
PREVIOUSLY:
- Yeah. Those PC Guys Never Stood a Chance, Palm.
- Palm: Spare Change for Financial Viability?
- Alms for Palm?
- Palm New-ness: A Target Price of Zero
- Palm: Hey … Hello? Excuse Me … Over Here!
Comments
I agree that the name is not helping out. Assuming video and access to some App store(large assumption), the Pre has one huge advantage you overlooked. I think it is hands down the best phone available on Sprint. Having WiFi alone trumps the Instinct. Customer service may leave something to be desired, but Sprint’s actual network is way better than AT&T. From that perspective, it doesnt need to be better than the iPhone or an Android phone…it just needs to be the best Sprint phone. Im tied to Sprint and dont plan on leaving, so Im pretty intrigued by the Pre…
Posted by Dominic Pannone at January 8th, 2009 at 4:49 pmDominic, as an iPhone owner who wants to see Apple in a more competitive market, I think the Pre needs to be more than the best Sprint phone because Sprint is bleeding customers. They need to stop the flow AND grow to survive, IMHO.
Posted by Kawika Holbrook at January 8th, 2009 at 5:49 pmKawika, I dont disagree, but the iPhone is stuck on AT&T through 2010. Sprints network is far superior to AT&T and wiMAX has almost arrived (could be good or bad). My point is…At first, I think the Pre will do well simply cause its the best on Sprint. This strategy alone could keep Palm afloat. After real world tests, it could have better funtionality than iPhone and start pulling in new customers or it could match the Storm. Willnt know until it hits the streets. Im just excited to finally have a decent Sprint phone with WiFi. Hopefully this is the beginning of many quality phones for Sprint…
Posted by Dominic Pannone at January 8th, 2009 at 7:54 pmLooks like the Pre will have video. And an App Store as well. I don’t think either will make much of a difference — especially after the next update to the iPhone firmware and the release of a third generation iPhone.
And I say that as a former long-term Palm user (Pilot to Treo).
Posted by John Paczkowski at January 9th, 2009 at 5:17 amI’ve done a detailed review of how Palm Pre stands to Nokia N97 at
Posted by Farhan Chawla at January 10th, 2009 at 8:42 amhttp://senseapplied.com/index......nokia-n97/