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  1. #1141  
    Maybe it will get cheaper..but down the line probably. I still don't think Palm can pump these babies out fast enough to justify a lowball price. They're low on cash. It just doesn't fit what Palm desires here and they don't want a repeat of the Centro. Initial demand will be crazy to price it low.
  2. #1142  
    Perhaps May 17th is when it is available to Premier customers and business customers and June 29th when it goes on general sale ?

    Just a thought.
  3. #1143  
    Sprint Premier is a new customer-loyalty program that rewards Sprint’s bigger-spenders and long-time subscribers. Customers with 10-years of Sprint-loyalty tucked under their belt can expect to be in enrolled in the Sprint Premier program. More interestingly, customers with just three months of service on a Sprint wireless plan of at least $69.99 on a single line, or $99.99 on a shared line, will be enrolled in the Sprint Premier program.

    Now why would Sprint want to first sell the Pre to these folks? They're either long-term customers or customers that are on Pre like plans already. Makes no sense to offer phones to them first or to single them out in that way. And nothing has been said that they would get first shot at a phone. BTW..i'm a Premier customer for what its worth..and it hasn't been much yet.

    Sprint Premier customers can expect to be offered a handset upgrade credit after just one-year of service on a typical two-year wireless contract, while regular Sprint customers wait two years before becoming eligible for a handset upgrade.

    This...is the main reward for Premier customers. You can upgrade with discount after only ONE year instead of waiting two years like usual. This is what is meant by "early upgrades".
  4. reminiz's Avatar
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    #1144  
    Quote Originally Posted by cardfan View Post
    Sprint Premier is a new customer-loyalty program that rewards Sprint’s bigger-spenders and long-time subscribers. Customers with 10-years of Sprint-loyalty tucked under their belt can expect to be in enrolled in the Sprint Premier program. More interestingly, customers with just three months of service on a Sprint wireless plan of at least $69.99 on a single line, or $99.99 on a shared line, will be enrolled in the Sprint Premier program.

    Now why would Sprint want to first sell the Pre to these folks? They're either long-term customers or customers that are on Pre like plans already. Makes no sense to offer phones to them first or to single them out in that way. And nothing has been said that they would get first shot at a phone. BTW..i'm a Premier customer for what its worth..and it hasn't been much yet.

    Sprint Premier customers can expect to be offered a handset upgrade credit after just one-year of service on a typical two-year wireless contract, while regular Sprint customers wait two years before becoming eligible for a handset upgrade.

    This...is the main reward for Premier customers. You can upgrade with discount after only ONE year instead of waiting two years like usual. This is what is meant by "early upgrades".

    I think where people are getting that it might be available earlier to Premier customers is because everythingpre.com or prethinking.com or mypre.com one of those sites reported back in Feb that Premier customers would get first dibs.
  5. #1145  
    Quote Originally Posted by cardfan View Post
    Maybe it will get cheaper..but down the line probably. I still don't think Palm can pump these babies out fast enough to justify a lowball price. They're low on cash. It just doesn't fit what Palm desires here and they don't want a repeat of the Centro. Initial demand will be crazy to price it low.
    There seems to be a fundamental and critical misconception here about the way Palm gets paid for the Pre, or any manufacturer gets paid for any phone. This isnt specifically directed at you cardfan but generally at the people who post 'they cant price it at $199, they need money now'.

    You are not Palm's customer when you buy the Pre. Sprint is. Sprint pays Palm a set wholesale price for the phone and then choses to subsidize it to what ever level they need to attract customers.

    Whether Sprint prices the Pre at $0 or $299 that has absolutely no effect on the money Palm makes. Once Palm ships the Pre to Sprint, they are done. They made their money. This is why the original iPhone deal was so shocking to the industry. Apple managed to swing a deal that got them a cut of the monthly revenue from each user. Unprecedented in the industry. For a variety of reasons Apple couldnt maintain that and the iPhone 3g was sold to AT&T in the traditional fashion.

    Since Sprint receives the full monthly revenue from each subscriber and can choose how much of their 24 month revenue stream they want to sacrifice to gain a customer they arnt tied to a fixed dollar amount of subsidy.

    Typically a phone like the Pre will cost the carrier $400 or so. They will offer about a $200 subsidy for a new customer signing a contract against the future revenue from that customer. They will sell the device without commitment for about $500, making a smaller but still respectable profit. The key here is that no matter what price the Pre is sold at, Palm has already made their money. They will set the wholesale price of the Pre at a level that allows them to pay for the bill of materials for the phone (~$200 or so) licensing, advertising expenses, R&D, logistics overhead etc. What ever subsidy Sprint chooses to offer doesnt effect them in the slightest.
  6. #1146  
    Quote Originally Posted by bryanharig View Post
    There seems to be a fundamental and critical misconception here about the way Palm gets paid for the Pre, or any manufacturer gets paid for any phone. This isnt specifically directed at you cardfan but generally at the people who post 'they cant price it at $199, they need money now'.

    You are not Palm's customer when you buy the Pre. Sprint is. Sprint pays Palm a set wholesale price for the phone and then choses to subsidize it to what ever level they need to attract customers.

    Whether Sprint prices the Pre at $0 or $299 that has absolutely no effect on the money Palm makes. Once Palm ships the Pre to Sprint, they are done. They made their money. This is why the original iPhone deal was so shocking to the industry. Apple managed to swing a deal that got them a cut of the monthly revenue from each user. Unprecedented in the industry. For a variety of reasons Apple couldnt maintain that and the iPhone 3g was sold to AT&T in the traditional fashion.

    Since Sprint receives the full monthly revenue from each subscriber and can choose how much of their 24 month revenue stream they want to sacrifice to gain a customer they arnt tied to a fixed dollar amount of subsidy.

    Typically a phone like the Pre will cost the carrier $400 or so. They will offer about a $200 subsidy for a new customer signing a contract against the future revenue from that customer. They will sell the device without commitment for about $500, making a smaller but still respectable profit. The key here is that no matter what price the Pre is sold at, Palm has already made their money. They will set the wholesale price of the Pre at a level that allows them to pay for the bill of materials for the phone (~$200 or so) licensing, advertising expenses, R&D, logistics overhead etc. What ever subsidy Sprint chooses to offer doesnt effect them in the slightest.

    Nicely Put. A+++++
  7. #1147  
    Quote Originally Posted by cardfan View Post
    Sprint Premier customers can expect to be offered a handset upgrade credit after just one-year of service on a typical two-year wireless contract, while regular Sprint customers wait two years before becoming eligible for a handset upgrade.

    This...is the main reward for Premier customers. You can upgrade with discount after only ONE year instead of waiting two years like usual. This is what is meant by "early upgrades".
    I believe that THIS is why we all think Premier Customers will get first dibs on the Pre.

    Be among the first to know and get new phones and services from Sprint.

    Sprint Premier
  8. #1148  
    I do remember reading somewhere that Premier customers will get first chance at the Pre. But take that with as big a grain of salt as the rest of these comments in here

    I know that Sprint normally lets their business customers have first dibs on phones.

    Guess we will all find out soon enough

    Quote Originally Posted by Reminiz View Post
    I think where people are getting that it might be available earlier to Premier customers is because everythingpre.com or prethinking.com or mypre.com one of those sites reported back in Feb that Premier customers would get first dibs.
  9. #1149  
    I agree the 17th will be for the Premier but who knows what is what anyway.
  10. #1150  
    Thanks for the obvious lesson, but Sprint can't lowball because i believe Palm is charging Sprint much more per Pre than any recent palm product (we don't know..this is opinion). Sprint cannot subsidize like the others can because their monthly plans are much lower (again, jmo).

    So Price does depend on what Palm desires their margin to be and how much Sprint is willing to sub it of which there is easily a limit. See, there's two parts there. Not just Sprint.

    In addition, Palm does have an interest in how their product is positioned..with price being one of the P's. I'm sure its all negotiated. Just as Sprint would have an interest in what future services or apps might appear on the phone. This is a more integrated/complex partnership than say me selling Walmart a bunch of widgets and letting them do whatever to sell them.
  11. #1151  
    Well we all know that all Sprint phones run by contract so they can get their money back & we all know those overseas even Bono have money invested into the Pre, figuring the new OS & different shape & being the 1st to bring it. Now if Sprint could just organize itself from the inside out I think they might become something again.
  12. #1152  
    Quote Originally Posted by cardfan View Post
    Thanks for the obvious lesson, but Sprint can't lowball because i believe Palm is charging Sprint much more per Pre than any recent palm product (we don't know..this is opinion). Sprint cannot subsidize like the others can because their monthly plans are much lower (again, jmo).

    So Price does depend on what Palm desires their margin to be and how much Sprint is willing to sub it of which there is easily a limit. See, there's two parts there. Not just Sprint.

    In addition, Palm does have an interest in how their product is positioned..with price being one of the P's. I'm sure its all negotiated. Just as Sprint would have an interest in what future services or apps might appear on the phone. This is a more integrated/complex partnership than say me selling Walmart a bunch of widgets and letting them do whatever to sell them.
    I agree that Palm is likely involved in the pricing process, but it is Sprint's decision in the end.

    Remember that the 'margin' Sprint makes on a new customer is hard to calculate. Since the cost of running their network is highly fixed it is difficult to calculate just what any individual user 'costs' Sprint. (obviously if one user leaves, the network doesnt get 1/49,000,000 cheaper to operate. They just loose that revenue and pay the same fixed costs) Thus the subsidy isnt so much directly related to the future profit they hope to realize from that particular customer but more a set 'customer acquisition cost' they are willing to pay in light of market conditions.

    If you look at the subsidies and plans offered by some European carriers you will see that they are offering more expensive phones, cheaper on lower priced plans then those here in the US. They are in a more competitive market and are forced to pay a higher 'customer acquisition cost' in the form of greater subsidies.

    Likewise the cost Sprint will have to pay to acquire new customers with the Pre will depend on the competition they face. In this case, their new 'Flagship Phone' is being launched within 1-1.5 months of a more successful competitor's established 3rd revision of their 'Flagship Phone' that is priced at $199. That is serious competition.

    I dont think the cost of the Pre will be unusually high, these are all commodity components and not especially pricy. But no matter what the wholesale cost of the Pre is Sprint will need to price it competitively.
  13. #1153  
    true what you say bryanhanig but with the new emulator for the Pre which will operate all previous Palm systens as well w/it's new shape a design it must be in preperation to bring b ack new & old customers.
    On May 6th they will be going for their 8 hour class to learn the Pre, called a classic since it's emulator will operate all previos it will bring Sprint back to high hopes again.Their stocks have raised based on the Pre so it's momentem has already started.
  14. #1154  
    Quote Originally Posted by bryanharig View Post
    There seems to be a fundamental .....effect them in the slightest.
    That was a good post. thank u
    da Gimp

    Please note: My spelling sucks and I'm to lazy to check it.
  15. #1155  
    Cheers!
  16. #1156  
    my prediction is they anniversary the release date of the instinct of june 20 th which was big numbers for sprint
  17. #1157  
    Quote Originally Posted by fkpalm View Post
    my prediction is they anniversary the release date of the instinct of june 20 th which was big numbers for sprint
    lets hope not! The iphone 3.0 will likely be officially announced by then, and no matter how great the Pre turns out to me, it'll be overshadowed by Apple.
  18. #1158  
    Quote Originally Posted by fkpalm View Post
    my prediction is they anniversary the release date of the instinct of june 20 th which was big numbers for sprint
    To be honest, the logic doesn't follow. The Instinct launch was big because of the big advertising campaign, not the date.
    "'Form follows function' that has been misunderstood. Form and function should be one, joined in a spiritual union."
    Frank Lloyd Wright
  19. #1159  
    I'm getting laptop next week w/that in mind your dream phone is acceptable to he Pre?
  20. #1160  
    may 4th is the day sprint will announce its q1 results and the pre release date will be announced. Sprint will lose another million customers but will make up for the bad news with announcing the pre release date.
    Last edited by Young HoV 718; 04/22/2009 at 08:43 PM.

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