Analyst to Sprint: You’d Sell More Pres if They Cost 99 Cents
by John Paczkowski
Posted on August 26, 2009 at 8:45 AM PT
A renewed advertising push for the Palm (PALM) Pre and an increase in the number of applications available for it haven’t done much for the device’s sales. According to Pali Research analyst Walter Piecyk, weekly Pre sales are holding steady in the mid-20,000 range at which they stabilized a few weeks back.
“Advertising for the product has increased with a more direct attack on the iPhone but that does not appear to have materially impacted sales from its prior sales levels,” Piecyk writes in a note to clients today. “The Pre continues to add applications that will increase the appeal of the phones like Spades and Bubbles, two game applications and total application downloads have now topped 3 million.
“However,” Piecyk adds, “with only 41 apps available we wonder how apps with limited appeal like Shabat Shalom, which allow users to check candle lighting times, are showing up before proven iPhone successes like a basic fart sound application or Facebook.”
Piecyk goes on to suggest that Sprint (S) needs to step up its efforts to market the Pre lest it fumble the best opportunity to come its way in a while.
“Overall the launch of the Pre has been a success for Sprint by increasing the profile of the company’s data network and its use as an effective retention tool. However, we expect Verizon to heavily market whatever WebOS phone they get their hands on.
“This is a good operating system,” Piecyk notes, “and phone and the multi-tasking functionality is a clear differentiated advantage but competitive advantages in technology are fleeting and we cant imagine that Apple and others will not be able to replicate the multi-tasking functionality in short order. Between Verizon’s launch of a Palm product in 2010 and the inevitable end of the multi-tasking differentiation we believe Sprint is wasting a valuable opportunity to get the Pre in as many customers’ hands as possible this year.”
And just how should Sprint maximize that opportunity? Simple, says Piecyk: Slash the Pre’s price to $99, or even 99 cents.
Comments
Amazing analysis. If only you make it cheaper you will sell more. I am in awe.
Posted by William Gentry at August 26th, 2009 at 10:35 amI wonder if the spent more than five minutes coming up with the name for the thing.
“Pres” normally is shorthand for the President.
“pre” is often used in conjunction with other words as in pre-industrial.
Of course if it replaces the iPhone as the top selling smartphone we will learn to read all over again and that when you are searching for curtains, you’d better not start out by typing “windows hardware”.
The demise of the “Pre” will occur for several reasons, but they could have given it a fighting chance by giving it a sensible and unique name.
Posted by Mac Beach at August 26th, 2009 at 11:00 amThe Toyota Prius, the Nintendo Wii and the Palm Pre all have really stupid names. (I’m a satisfied owner of all three.)
“…proven iPhone successes like a basic fart sound application or Facebook.” So, OK, the iPhone has a less stupid *name*….
Posted by David Gorgen at August 26th, 2009 at 3:27 pm