I consider this as a huge fail on palm side. They announced the Pre 5 months ago. And even after 5 months they are launching with just 200k(acc to some reports. It might be wrong though).
What is the downside of being somewhat short on units on opening day? Versus paying to hold a huge inventory for an extended period of time in the current economy? Sure there will be a few "I have to buy a phone in the next several days or so or I'll explode" folks, but that's no where going to be the majority.
Rather dubious strategy of trying to sell all going to sell in the first 4-5 days. A better strategy is to get very good units in the hands of folks and let the demand build. They will be competing with the iPhone for a long amount of time if successful. If the Pre stops the "bleed" at Spring it will be a winner over the short term. Then they can incrementally move to a more competitive state after that.
Besides a scarcity generates hype in and of itself. Folks selling phones on eBay to make a fast buck ( like XBox, PS2 , etc. ). If you have to go down to a Sprint/BestBuy/RadioShack to play with one .... foot traffic through the store.. retailers hate that.
There is an upside to building up on a base of satisfied users versus some hot "fad". Palm doesn't need a 'what's hot' product they need a solid winner that can compete on merits. Fads dry up. Apple can leverage fads better because there is a cult following that drinks kool-aid like Jim Jones rally that follows them. [ Not that all the customers are looney but there is a lunatic fringe out there with Apple. ]
Finally if Sprint has been selling 100K smartphones in that price class the last 6-7 months then 200K would represent a 100% INCREASE in phones sold.
The Pre is going to sell in one country on the 3rd largest network (in terms of subscribers). Of course the numbers aren't going to be the same as iPhone numbers on opening day. To stockpile the same set of phones are iPhones would be silly. You have to normalize the markets being sold into.
Palm needs a good, relatively problem free (glitches) rollout. Effectively, the whole company is bet on this phone. If they did a quirky, glitched rollout like Apple did last summer they'd be toast. Apple does SNAFU lauches and folks camp out in droves anyway. Seriously, unless you want to go to a circus why does anyone show up on the first couple days of an Apple launch?
I know palm(and the economy in general) isn't in the best of financial health but still i just dont understand why couldn't they find some investors after all this *iPhone killer* hype?
Exactly who is postulating the Pre as an iPhone killer. An iPhone competitor sure, but if Palm isn't hyping it as a "killer" why should they have to raise the money, etc. to hype it at a level that they never intended to support. To let external folks dictate the costs of your rollout would bea dumb move.
As they have done it so far seems reasonable.
I think palm itself doesn't believe they have a chance at giving iPhone some real competetion. App store is already huge and definitely one of the biggest reason behind iPhones continued success.
So that whole year the phone was out and sold a substantive number of units without an apps store was merely a fluke??? The amount of revisionist history on this forum is kind of funny sometimes.
Furthermore, the App store probably sells more apps to Touches than to iPhones.
One of the competitve factors for Pre will be against the other phones on the Sprint network. For those who are for better or worse hooked to the Sprint network the iPhone isn't an option. Where the networks are competitive then the phones are more competitive. There are susbstantive folks who ran out bought iPhones and ATT's network sucks for them. For those folks where the Sprint network works better the Pre is competitive enough.
It is looney to state that the Pre has to exhaustively match feature to feature to the iPhone in order to have a change to be competitive. Some features matter more than other and lots of folks want different groupings of features.
If the Pre comes out on Verizon later in the year... at least you could conceptually take your Pre to another network if wanted to later. Right now there is no end in sight for the ATT binding.
If pre doesn't have a huge user base very soon then it'll prove to be very hard to shift the developer's attention away from iPhone. They needed a huge launch to be any where close to being an iPhone competetion. But it doesn't look like they are headed in the right direction for now. June 6 is just a week away now. Let's see if these miniscule launch rumor is true or not.[/QUOTE]