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  1. #21  
    Originally posted by mikec


    They could kill it, trying to push and recoup the R&D that went into the Tungsten line...it's not that hard to stick a CDMA chip in those devices.
    That is faulty reasoning. If the 600 is superior to what Palm has, there is no reason to kill it except for pride. Recouping sunk money is not a valid reason. At any one point, the goal of a company is to maximize NPV Cash Revenues minus NPV Cash Outlays. Make the simplifying assumption that R&D for both the Treo and the Tungsten is already spent and it follows that they should stick with the device that is going to bring in the most money (after manufacturing costs).
  2. #22  
    Kurt, I do financial stuff for a living, so I know that sunk costs are sunk and shouldn't factor in, NPV, maximize cash flow, etc. , etc.

    There's an old saying in economics....in the long run, things move toward equilibrium....but in the long run, we're all dead.

    I've seen many examples where "better" products were killed off by an acquiring company, even when they have more potential upside.. Yes, silly as it is, pride/politics, etc. comes into play all too often, and numbers are manipulated to prove it.

    It's not faulty reasoning, just a different line of reasoning.

    As I said, I hope I'm wrong. I'm a big Treo 300 fan, and I'll be first in line to get a 600 if and when it comes out, but that doesn't change the fact that Palm's track record doesn't inspire confidence.
  3. #23  
    Kurt, I mean to comment that I _also_ do fin svc. work; I know you do as well, per your link.
  4. #24  
    Originally posted by mikec

    I've seen many examples where "better" products were killed off by an acquiring company, even when they have more potential upside.. Yes, silly as it is, pride/politics, etc. comes into play all too often, and numbers are manipulated to prove it.

    It's not faulty reasoning, just a different line of reasoning.
    At least we see eye to eye. I'm not saying people never do stupid things. I'm just saying that killing the treo because money has been spent on the T|W would be a stupid thing to do.
  5. #25  
    Here's a quote from this week's San Jose Business Journal, a publication which covers Silicon Valley business:
    "The acquisition (of Handspring) is obviously going to lend some strength to the Treo platform, especially the Treo 600 going forward, and should encourage additional developers to support the Treo platform,' (Gartner Dataquest analyst) Todd Kort says."
    The article also quotes a software developer who believes that the acquisition will entice more developers to come up with software because there was concern about Handspring's long-term viability as a company.

    This is all speculation, of course, but those smarter than me are clearly saying we're going to get a 600.
  6. #26  
    I wouldn't be surprised if Jeff Hawkins got assurances that his Treo survives, at least for a while. I would think that he would leave in a firestorm if it's cut. This doesn't mean that it won't be, of course.

    I hope that the Palm folks genuinely mean what they're saying, which is quite true, that the Treo line is the leader and they want to capitalize on that. If they think that it's competition that should be killed to pave the way for their Tungsten communicators, then it will probably make MS very happy because that's probably the road to bigger Palm trouble.
  7. #27  
    I also think that its EXTREMELY obvious that Palm bought Handspring for the Treo (and Hawkins too)

    The PDA is officially DEAD --- Smartphones are the thing, and it will be that way FOREVER

    Palm has proven that they are EXTREMELY incompetent when it comes to making a smartphone --- however, they have the money to invest in developing the Treo even further, and Hawkins will be empowered with more money, more developers, and more crap to make this the BEST PDA/Phone/Smartphone out there!

    The biggest winner in this merger is us (the consumers), mainly because the Treo is only going to get BETTER and BETTER!!!
    BLUETOOTH!!!!
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