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Palm Pre will be “DOA”, says Analyst

Categories: Palm, Palm Pre, Research
By: , IntoMobile
Friday, May 1st, 2009 at 6:57 AM

Palm PreCollins Stewart analyst Ashok Kumar has done some number crunching and deduced that 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 does not match or beat AT&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]

About The Author

Simon Sage

Simon Sage’s education largely surrounded writing, technology and online community, leading him to begin his blogging career at www.BlackBerryCool.com and to quickly discover a vibrant and active community surrounding BlackBerry and mobile technology. In exploring RIM’s platform, he has learned what enterprises are looking for in mobility as well as what makes the innocuous BlackBerry so appealing to them. Recently Simon’s been covering RIM’s gradual move into an already-crowded consumer market, and the impact of burgeoning challengers, such as the iPhone, as well as long-time leaders, like Nokia, on BlackBerry’s advancement. With plenty of content under his belt, Simon will be branching off a bit to see what other smartphone manufacturers are working on while still using BlackBerry as a barometer. At IntoMobile, you can count on his posts being even-handed, well-informed and thought-out.

  • Kevin

    Wake up.

    Subsidized at $199 does not mean Palm gets only $60 over its manufacturing cose.

    It means Palm probably gets $499+ per unit.

  • Kevin

    cose = cost above