http://digitaldaily.allthingsd.com/20090520/pre-shortages/ by John Paczkowski Mon, 23 Nov 2009 02:08:54 +0000 http://wordpress.org/?v=2.8.4 hourly 1 http://digitaldaily.allthingsd.com/20090520/pre-shortages/comment-page-1/#comment-7494 TechKive » Blog Archive » Sprint CEO to Pre Buyers: Get Your Sleeping Bags Ready [Digital Daily] Wed, 20 May 2009 20:09:30 +0000 http://digitaldaily.allthingsd.com/?p=17937#comment-7494 [...] Read this article: Sprint CEO to Pre Buyers: Get Your Sleeping Bags Ready [Digital Daily] [...] [...] Read this article: Sprint CEO to Pre Buyers: Get Your Sleeping Bags Ready [Digital Daily] [...]

]]> http://digitaldaily.allthingsd.com/20090520/pre-shortages/comment-page-1/#comment-7480 darius arya Wed, 20 May 2009 16:11:23 +0000 http://digitaldaily.allthingsd.com/?p=17937#comment-7480 Let's assume that 5% of Sprint's customers (49 million) opt to go for the Pre, that would be approx. 2.5 million customers for Palm. Now let us assume another 2.5 million consumers opt to make the switch over the next year, which would be an aggregate of 5 million new Palm Pre consumers. Assuming Palm nets $300 per phone (incl. accessories), netting Palm $l.5 billion, not bad. Palm's current market cap. is approx. $1.5 billion. I feel these estimates are conservative, however they are dependant on the logistics and supply chain. Let’s assume that 5% of Sprint’s customers (49 million) opt to go for the Pre, that would be approx. 2.5 million customers for Palm. Now let us assume another 2.5 million consumers opt to make the switch over the next year, which would be an aggregate of 5 million new Palm Pre consumers. Assuming Palm nets $300 per phone (incl. accessories), netting Palm $l.5 billion, not bad. Palm’s current market cap. is approx. $1.5 billion. I feel these estimates are conservative, however they are dependant on the logistics and supply chain.

]]> http://digitaldaily.allthingsd.com/20090520/pre-shortages/comment-page-1/#comment-7475 darius arya Wed, 20 May 2009 15:58:53 +0000 http://digitaldaily.allthingsd.com/?p=17937#comment-7475 There is no question that the Pre is a far better phone than the iPhone, however there are many other headwinds the Pre will initially face. One of which is the consequences of entering the market late, however not too late. All those remaining Sprint customers who have remained loyal to their wireless provider will definately make the eventual switch if the Pre is compelling enough, however many Smart phone users will remain with ATT until Pre is mature enough to prove its superiority. Nevertheless, no matter how good the Pre turns out to be you will always get consumers that prefer one provider over the other. This being said, the potential for the Pre to corral a large segment of the market is indisputable if the phone is anything close to what the pundits purport. One should note that the iPhone has less than 5% of the Smart phone market, and the Pre's success does not rest on the iPhones demise. Actually the rivalry will in itself generate a market for both phones without their respective companies needing to outlay substantial resources. The media's proclivity to create rivalries is ubiquitous, which should be a boon for the Pre. The Pre can't fail and won't fail regardless of what the Shorts are promulgating. I will now have an iPhone and a Pre. There is no question that the Pre is a far better phone than the iPhone, however there are many other headwinds the Pre will initially face. One of which is the consequences of entering the market late, however not too late. All those remaining Sprint customers who have remained loyal to their wireless provider will definately make the eventual switch if the Pre is compelling enough, however many Smart phone users will remain with ATT until Pre is mature enough to prove its superiority. Nevertheless, no matter how good the Pre turns out to be you will always get consumers that prefer one provider over the other. This being said, the potential for the Pre to corral a large segment of the market is indisputable if the phone is anything close to what the pundits purport. One should note that the iPhone has less than 5% of the Smart phone market, and the Pre’s success does not rest on the iPhones demise. Actually the rivalry will in itself generate a market for both phones without their respective companies needing to outlay substantial resources. The media’s proclivity to create rivalries is ubiquitous, which should be a boon for the Pre. The Pre can’t fail and won’t fail regardless of what the
Shorts are promulgating. I will now have an iPhone and a Pre.

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