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  1.    #1  
    I saw the Centro on AT&T for $39 at BestBuy today...

    I can't help wondering whether, given the obvious drop in Palm's profits due to the much thinner margins of the Centro, whether Palm made the Centro a little too cheap... $39 ? I think that even if instead of being $99 on Sprint, it was an extra $50 ($149), it would have done just as well. So I wonder if Palm could have given itself an extra $50/device -- a little extra $margin -- and still sold just as many...
  2. #2  
    Quote Originally Posted by neurocutie View Post
    I saw the Centro on AT&T for $39 at BestBuy today...

    I can't help wondering whether, given the obvious drop in Palm's profits due to the much thinner margins of the Centro, whether Palm made the Centro a little too cheap... $39 ? I think that even if instead of being $99 on Sprint, it was an extra $50 ($149), it would have done just as well. So I wonder if Palm could have given itself an extra $50/device -- a little extra $margin -- and still sold just as many...
    But don't you have to sign up for a plan? That's where the difference may be?

    Or AT&T could be subsidising the phone?
  3. #3  
    wow , ppl will complain no matter what huh?

    something costs too much, ppl cry,

    too little and they question it.

    Bestbuy is known to offer phones at a lower rate.
    They probally buy in extreme bulk or have some kind of incentive contracts-

    its 39 dollars with a NEW activation I think, not new plan.

    It just goes to show you that Palm has already made their money back on the centro through just Sprint themselves and now are offering the Centro at close to Cost (maybe 15$ per phone at most).
    And everything is pure profit
    Their next money maker is probally sitting at the door with the profit already calculated.
    Palms looking forward.
    Be happy that means more devices for us in the NEAR future.
  4. #4  
    Nothin is too cheap for the consumer.
  5. #5  
    Palm probably has nothing to do with the price. I'm sure Palm doesn't sell the phone to Best Buy, for instance, any cheaper than they sell it to AT&T. Best Buy is making it's money on the Centro from AT&T for signing people up. They're making the money on commission, not phone price. Do you really think the phones they give away or sell for a penny with new activation is a loss for them?
    Kyocera 6035 > Kyocera 7135 > Treo 600 > Treo 650. All Verizon. Sprint Treo 755p, HTC Mogul & Centro
    Unlocked Treo 680 for trips outside Sprint's areas
  6. dlai's Avatar
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    #6  
    Has nothing to do with the phone and everything to do with the volume Best Buy sells phones at. They are willing to lower the price a bit to get to the next level of commissions paid. Given the volume they sell, they are also getting special spiffs from ATT and Sprint, perhaps $50 or so for each phone. Radio Shack does this every once in a while as well. BTW, given the volume of phones both these places buy, they will get a lower purchase price than most places.
  7.    #7  
    Look, I think its great that us customers can buy a Centro so cheaply. I just was wondering if in hindsight Palm should have carved out a little more margin for itself (say an extra $30-50), seeing as it could really use a bit more revenue and profit margin right now, particularly since its the Centro that is gutting the sales of the higher margined Treos...
  8. #8  
    I think Palm is getting plenty for the phone. Remember it is $399 without a contract (at least on Sprint). Any more expensive and I would have opted for the 755P which is only $100 more ($199 with contract). And has more memory. Best Buy had the red Sprint phone for $49 a while back. I don't think these prices affect Palm so much as the carrier or retail store in that they are subsidizing the cost to the consumer.

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