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  1. dr3wster's Avatar
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       #1  
    One word...

    EBAY!!


    Hey Everyone!

    We all know that in the US, it seems that the uptake of the Pre / Pixi hasn't been as great as they could have been, for a number of reasons (not discussed here).

    We also know that people all around the world (eg. Australia and other parts of Asia) are dying to get their hands on a Pre, but short of getting a QWERTZ-based Pre / Pixi, are just unable to have this privildege.

    SO, given that Palm has this massive stockpile of inventory that Palm's carrier partners just can't seem to get out the door, why doesn't Palm just "discreetly" auction Pre / Pixi phones in a unlocked state, on ebay?

    Sure Palm's getting more and more carrier partners, but the fact is, sometimes people just don't want to jump carriers for the sake of a new phone.. it's too much trouble. That's probably why the unlocked Treo Pro helped Palm..


    What do you guys reckon?
  2. #2  
    or give the new ones as replacements instead of giving us crappy refurbs. At least the existing customer base would be happier.
  3. #3  
    Edited and deleted by LCGuy: I stand corrected.

    I misread the PALM financials, and he is right. Please see the post below by fid!

    Thankyou: fid.
    Last edited by LCGuy; 04/24/2010 at 06:22 AM.
    "The more I learn, the more I realize just how little I really do know!" -Albert Einstein

  4. solarus's Avatar
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    #4  
    Who cares the the Pre 2.42365 Is coming with 9G speed, Mr. Fusion powered battery, 3D screen that requires no glasses, and can materialize a Lambo when asked

    Yes I am quite drunk
  5. #5  
    Quote Originally Posted by solarus View Post
    Yes I am quite drunk
    and yet you managed to type all that perfectly
  6. fid
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    #6  
    Quote Originally Posted by LCGuy View Post
    PALM doesnt have excess inventory. Thier carrier, Verizon, does.

    Those phones are bought and paid for.. PALM has already realized the revenue for them (which is why the last Q was better than expected, but the current Q will show no revenue from Verizon, who has an exclusive for the + devices, likely for 3 months, so PALM couldnt produce and sell thier own Pre+ and Pixi+ during that time).

    Conjecture is currently that the exclusivity is a 3 month one, and should be ending at the end of April, which should spearhead the AT&T launch which PALM has been producing the hardware for, and likley will show sales in the following Q.

    But, no, PALM doesn't have an inventory problem Verizon does.
    There you go again, LCGuy. Shame on you. You have little understanding of how that works. Its not just you though, so I'll give you a lesson. Phones are floated (on a deposit) with orders from carriers.

    This is much like the car dealership down the road from you. Dealerships have a low-interest loan for the vehicles (but don't own them).

    If Palm had most of the revenue, they would care less. However, 'sell-through' is what is most important to OEMs. Palm still has the most at stake tied up in manufacturing costs (along with their own, short-term, low-interest loans).

    They don't realize most of their 'revenue' until 30 days after the carrier has SOLD the device.

    When phones are 'marked' down, you can be sure that affects the OEM. It usually affects them far more (as the carrier most often makes up for any small concessions throughout the life of contract).
  7. solarus's Avatar
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    #7  
    Quote Originally Posted by 063_xobx View Post
    and yet you managed to type all that perfectly
    Yes but it took me 10 minutes
  8. #8  
    @fid

    so does that mean let say Verizon orders 1 million pre's that they paid right out for them in full, or just paid a small deposit for them. Or does the carriers just make money on contracts signed with customers, and not really the devices at all. So in term if they dont sell any devices Palm doesnt get paid, and Verizon dosent get new contracts?
  9. fid
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    #9  
    Quote Originally Posted by wellwellwell11 View Post
    @fid

    ... Or does the carriers just make money on contracts signed with customers, and not really the devices at all ...
    Correct. Carriers typically realize profit on hardware sales after a period of time on contract. It is dependent on on several factors (as you would guess) but usually it is several months into the consumers contract.

    (As a side note, this is one of the reasons why Verizon announced the raising of their early termination fees for smart phones, last Oct, 2009. With as many BOGO's they've promoted, savvy consumers would use this instrument to buy another phone, cancel one of their existing lines then offer the equipment on eBay for a several hundred dollar profit. Since Verizon had paid for the equipment, they would effectively lose money on the lower ETF + (initial sales price).)

    Back to the OP's point, one problem that exists is in branding. Each agreement with a carrier (at least in the US) yields carrier specific packaged phones. As we also know, Verizon phones sitting in a warehouse can't be used on other carriers easily. Unlocked CDMA phones don't have quite the same potential as GSM phones.

    But the biggest problem with this plan is the business model won't support this solution. No consumer is willing to pay retail (or even close to retail) price for a phone and most carriers are not willing to give you a discount on phone service and allow you to bring your own.
    Last edited by fid; 04/25/2010 at 09:58 AM. Reason: + (initial sales price)
  10. #10  
    @fid

    oh ok I understand completly thank you for the information and explaining that.
  11. fid
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    #11  
    Quote Originally Posted by LCGuy View Post
    Edited and deleted by LCGuy: I stand corrected.

    I misread the PALM financials, and he is right. Please see the post below by fid!

    Thankyou: fid.
    Thank you LCGuy. My respect for you just went up tremendously
  12. dr3wster's Avatar
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       #12  
    Thanks everyone for their replies, and thanks especially to fid for explaining the "sell-through" concept... definitely makes sense now. No wonder Palm's in such a dire situation Let's hope they learn from their mountain of mistakes in the next refresh of devices..

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