There’s a fair amount of buzz about the Palm Pre launch and when it might actually occur. You see, the closer we get to June, the closer we get to the iPhone 3.0 announcement, which will turn all the blogs into all-iPhone-all-the-time. Based on previous years, it will again be all-iPhone-all-the-time in July when the new iPhone launches. (I’m sort of glad I’ll be on vacation in July.)
By continually avoiding release date talk, other than “first half of 2009,” Palm seriously risks losing a lot of marketing time to the latest iPhone launch. Apparently, a lot of folks expected the Pre to launch last week. The next guesstimated date is May 17. Mid-may would at least give Palm a couple weeks of attention before all eyes shift to Apple.
Both Palm and Sprint need the Pre to help revive their flagging businesses. According to AdAge, Sprint & Palm have enough problems without creating new ones:
Survey results released by ChangeWave last week suggest that the Pre will have to deal with Sprint’s image problem as a second-tier carrier with poor customer service. In a survey of 4,292 cellphone owners, 17% said Sprint is the top reason they will not consider the Pre. Incidentally, the same percentage said they won’t buy an iPhone because of AT&T. But Sprint is no AT&T. It’s struggling to keep its 49 million customers, while its bigger rival is growing its 77 million subscriber base.
I fall into that latter category by the way, I’m itching to get my hands on a Palm Pre and leave my horrid AT&T service (and equally bad customer service) behind. AT&T is apparently a little worried too – and they’re just good sales people. An internal AT&T document has leaked that provides talking points on how the iPhone is better than the Palm Pre. I would beg to differ with a couple of the points, but at least AT&T has talking points. I have my fingers crossed that, upon release, Sprint sales folks can tell me how the Pre is better than my iPhone and how to effectively sync the Pre with my Mac.
A recent post by 24/7 Wall Street lists Palm as one of the 12 brands most likely to disappear in the next year, partially because of its partnership with Sprint.
Recent research shows that almost no one who owns an Apple (AAPL) iPhone or RIM (RIMM) Blackberry will switch to the new smartphone, so Palm will have to essentially expand the market to get share for its new device during a recession. The “Pre” will also be sold exclusively though Sprint (S), the No.3 cellular carrier in the US which has been losing subscribers consistently for more than two years. The launch of the “Pre” is a disaster in the making. … The bottom line is that Palm has no chance of getting an even modest part of the smartphone market in a severe economic downturn since it competes with two of the premier technology companies in the world—Apple and RIM. Palm won’t be in business in a year.
Palm is expected to drive the advertising and has hired Modernista for the campaign. (Modernista did the “Skittles thing” before Skittles did.) But I wouldn’t put Sprint out for advertising either. One of my favorite commercials at the moment, one that I’ll stop the DVR and watch, is the new Sprint commercial with the 3-D Twitter birds, some humor, and the shot of the Pre at the end.
What do you think Palm and Sprint’s chances are?
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