Palm Pre will be “DOA”, says Analyst

Collins Stewart analyst Ashok Kumar has done some number crunching and deduced that Palm (NSDQ: PALM) has drastically cut down their production on their upcoming Pre handset, and combined with the fact that they’re running with America’s third-largest (or second-smallest, depending how you look at it) carrier, Palm would likely not meet the million sales sales mark for the second half of 2009. In short, “If Sprint (NYSE: S) does not match or beat AT&T (NYSE: T)’s subsidized iPhone price of $199, which translates to a subsidy in excess of $200, the Pre is DOA.”  If you take into account the parts alone cost $138, that doesn’t leave a lot for Sprint to chew on. If you think this analyst’s outlook is bad, another has gone so far to say that Palm will not live to 2010. The Pre might seem like Palm’s last-ditch effort, but they probably have one more stab at the GSM market with the recently-revealed Eos before kicking the bucket. If you remain a believer in the Palm pre, latest launch date rumors point to June 7th.

[via AllThingsD]