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  1. Honis's Avatar
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       #1  
    Hello,

    Dieter's most recent article (http://www.precentral.net/sprint-its...g-intervention) has lead me to ask (and attempt to answer) the question:
    Why hasn't Sprint lowered its Palm Pre prices to match the competition?

    First, I want to look at other Sprint smart phone prices with a 2 year contract.

    HTC Evo: $200
    BB Bold: $200
    The Hero: $150
    The Pre: $150
    Intercept: $100
    Moment: $100
    The Pixi: $50
    BB 8350i: $50

    Now, I want to look at the current price range of advanced and regular feature phones in the Sprint Store.

    Samsung Instinct s30: $0
    SANYO Incognito: $0
    i335 by Motorola: $40
    Max price in the category: $50

    Now lets look at the costs of the 2 year contract assuming only 1 phone on the contract and no tax.

    Sprint (data unlimited [5GB/mo]):
    450 min, $70/mo, phone Pre $150, Total contract: $1830
    Unlimited, $99/mo, phone Pre $150, Total contract: $2376

    Verizon (data unlimited [5GB/mo]):
    450 min, $90/mo, phone Pre+ $50, Total contract: $2210
    Unlimited, $120/mo, phone Pre+ $50, Total contract: $2930

    AT&T (data 2GB/mo):
    450 min, $65/mo, phone Pre+ $100, Total contract: $1660
    Unlimited, $95/mo, phone Pre+ $100, Total contract: $2380

    [AT&T equivalent package costs, AT&T says most smart phone users do not use more than 2GB/mo so your milage may vary between the above and below AT&T prices]
    AT&T (data 5GB/mo [2GB plan + 3x $10]):
    450 min, $95/mo, phone Pre+ $100, Total contract: $2380
    Unlimited, $125/mo, phone Pre+ $100, Total contract: $3100

    So what do all these numbers mean... Unless you're on AT&T and do not over do your data usage, you can:
    1) Get the Sprint plan.
    2) Buy a brand new Pre Plus off contract ($500) or one off ebay ($150~$200)
    3) Perform the Original to Plus board swap. http://forums.precentral.net/palm-pr...ion-guide.html
    4) Still save $ over buying a Plus and being stuck with Verizon or risking data use with AT&T if you went with the Sprint Simply Everything plan.


    To answer the original question my answer is:
    Sprint has the Palm Pre at $150 with a 2 year contract because the only competition it needs to match are the other smart phones in the Sprint store. In terms of phone price on a contract, the competition are not even on Sprints radar. At the $150 price point the Pre sits comfortably under the latest smart phones and above the older or "weaker" entry level smart phones. The Pixi at it's $50 price point sits on the edge of advanced feature phones and smart phones, right where an entry level phone leading to a higher cost plan should sit.


    What this discussion shouldn't include: fees beyond making plan features equal while including no fee prices, coverage maps, signal strengths in different areas, provider customer flame discussions, features that are not comparable, etc.
    Last edited by Honis; 08/27/2010 at 06:50 PM. Reason: Removed price comparisons from release and current. Added more smart phones from Sprint to the current price list
    I'm a man, but I can change, if I have to, I guess.
    Device history: *free feature Phone*x3 -> LG Rumor -> Palm Pre -> HTC Arrive (3days) -> Samsung Nexus S 4G (28 days) -> Samsung Galaxy S II Sprint Epic 4G Touch -> Palm Pre -> Pre 3
  2. #2  
    Interesting...
  3. twbbas's Avatar
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    #3  
    Interesting, nice calculations!
  4. #4  
    you are exactly right, total cost of ownership is much more important, and is significantly cheaper on sprint then others. I have a 4-person family plan, all with unlimited data, texting, gps nav and the extras, and my total bill after taxes/fees is under $215.
    however, many customers looking for a phone, not caring about the network won't do the math, and go for the cheapest one.

    I think that sprint has another reason for not competing on price with the pre: they aren't that interested in selling them. It's an onlder phone that didn't sell as well as hoped, and has had higher than average warranty claims. Returning a broken phone costs Sprint money, and customers become unhappy. Why would they price it cheaply if it causes unhappy customers? Keep it priced high so the only people that buy it are those that really want webOS and will be happy with it.
  5. #5  
    I'm sure that I've preached this mantra over and over again on multiple posts here at P|C. I DO NOT KNOW WHY PEOPLE ARE SO HUNG UP ON THE DEVICE COST!?!?!?!?!?!

    @Honis...you hit the nail on the head ....EVERYTIME I suggest a phone and plan to someone, they b!tch about the device costing too much or such-and-such carrier has that phone for $25 less....when, moronically they do not evaluate the cost as a whole.

    After all, the majority of us are married to a device until the contract has expired. The difference between a $0 device and a $200 device for that term is $8.33 a month. C'mon now people...stop being glamored by the <$100 differences among these devices....sheesh

    That is why I do not have an iPhone. The AT&T plan cost for my 5-phone smartphone Family plan vs Sprint is on the range of $4,000 less over that 2 year period. I have bought an iPod Touch and iPad and still came out ahead....and have the best of both worlds with my Pre's and iDevices.
    Last edited by MilenkoD; 08/27/2010 at 07:35 PM.
  6. #6  
    You know what Dieter and the others Really need to lay off the Sprint bashing...seriously...Sprint didn't eff up the pre launch with horrible marketing and **** poor QC issues....From what I could tell Sprint threw everything and the kitchen sink with marketing the Pre.

    The Pre wouldn't even exsist if it wasnt for Sprint....Neither VZW or ATT wasn't interested in anything Palm until after the Pre was announced by Sprint and Palm...

    Maybe Sprint charges more because they're the ONLY CARRIER that can actually sell the EFFING device...Does anyone ever think of that...why give it away when you dont have too...Do you think Verizon is giving away Mobile Hotspot out of their good graces? NO its because they needed the incentive to move the stock...Sprint obviously doesnt have this problem...

    Everyone and their mother knows Palm largest user bases are on Sprint, anyone that was on Verizon and ATT with Treos and were palm loyalist moved to Sprint for the Pre and the Pre Releases on VZW and ATT was little too late to get them back....

    Look we all know Palm is going with Sprint again for its Pre2 release and it will be 4G-Wimax it has to be to in order to be relevant against Android and upcoming WP7...All this wishful thinking Verizon is getting the new Pre before Sprint is a bunch of bull..Palm couldn't be more stupid...Right give to Verizon who:

    Is pumping out Droids every single week
    Riding the Android bandwagon Very HARD!
    Who has screwed palm before refusing to pick up 755p or the Centro until people screamed about it.
    Who has lost just about all loyal palm users to Sprint...

    Memo to Palm....Verizon has screwed you before and they will again...and they're not where you sub base is even at.
  7. #7  
    Quote Originally Posted by jaredsutter View Post
    you are exactly right, total cost of ownership is much more important, and is significantly cheaper on sprint then others. I have a 4-person family plan, all with unlimited data, texting, gps nav and the extras, and my total bill after taxes/fees is under $215.
    however, many customers looking for a phone, not caring about the network won't do the math, and go for the cheapest one.

    I think that sprint has another reason for not competing on price with the pre: they aren't that interested in selling them. It's an onlder phone that didn't sell as well as hoped, and has had higher than average warranty claims. Returning a broken phone costs Sprint money, and customers become unhappy. Why would they price it cheaply if it causes unhappy customers? Keep it priced high so the only people that buy it are those that really want webOS and will be happy with it.
    I dont know Sprint was quick to drop the Pixi to "Free" status when sales of it slowed, I'd think they wouldn't hesitate to do the same for the Pre if they had a hard time moving the device....Sprint is no different than the other carriers about dropping the price to move stock....

    Another reason I dont think Sprint has a problem selling the Pre the way VZW and ATT do...is when ever I see a Pre in the wild its 99.9% a Sprint Pre...I NEVER see an ATT Pre, and only a handful of Verizon Pre's..and in NYC I'm seeing 2-3 Pre's a day on average.
  8. #8  
    Quote Originally Posted by Blackbeauty212 View Post
    I dont know Sprint was quick to drop the Pixi to "Free" status when sales of it slowed, I'd think they wouldn't hesitate to do the same for the Pre if they had a hard time moving the device....Sprint is no different than the other carriers about dropping the price to move stock....
    Such a valid point... If the Pre wasn't moving they would dump the price to eliminate the inventory. I think they are moving just enough... But I bet by Christmas the Pre becomes a sub $100 phone.
  9. #9  
    The device price is higher because Sprint actually releases their device updates in a timely manor?
  10. #10  
    Quote Originally Posted by MilenkoD View Post
    I'm sure that I've preached this mantra over and over again on multiple posts here at P|C. I DO NOT KNOW WHY PEOPLE ARE SO HUNG UP ON THE DEVICE COST!?!?!?!?!?!

    @Honis...you hit the nail on the head ....EVERYTIME I suggest a phone and plan to someone, they b!tch about the device costing too much or such-and-such carrier has that phone for $25 less....when, moronically they do not evaluate the cost as a whole.

    After all, the majority of us are married to a device until the contract has expired. The difference between a $0 device and a $200 device for that term is $8.33 a month. C'mon now people...stop being glamored by the <$100 differences among these devices....sheesh

    That is why I do not have an iPhone. The AT&T plan cost for my 5-phone smartphone Family plan vs Sprint is on the range of $4,000 less over that 2 year period. I have bought an iPod Touch and iPad and still came out ahead....and have the best of both worlds with my Pre's and iDevices.
    Because the general public is stupid. They only care about the price tag they see attached to the thing. On the price tag $150 looks much more than Free*.

    This is why 2 year contracts (3 years in Canada) even started in the first place. In Hong Kong I've never signed any contract longer than a month.
    Palm IIIc -> Sony CLIÉ T650C -> Sony TJ-37 -> Palm TX -> Palm Centro -> Palm Pre Bell -> Palm Pre Plus Bell/Verizon Hybrid -> HP Veer -> HP Pre 3 NA -> BlackBerry Classic -> BlackBerry Priv

    It's a Late Goodbye, such a Late Goodbye.

    Need OEM Palm Pre parts? See here

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