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  1.    #1  
    Another 'take with a grain of salt' article.

    April 29 (Bloomberg) -- Palm Inc. may stockpile fewer than 400,000 Pre models when the touch-screen device goes on sale this year, making the phone scarce to enhance its allure to consumers, analysts said.

    The Pre will debut with about 375,000 units in stock, according to the median estimate of six analysts surveyed by Bloomberg. Apple Inc. sold 1 million iPhones in the three days after the debut of a faster 3G model last July. Half of Apple’s stores in the U.S. had sold out by that time.

    A sellout may help the Pre generate the buzz needed to win customers away from the iPhone. Palm is counting on the Pre, which has a wireless charger and software that lets users shuffle through applications like a deck of cards, to revive its reputation as a phone pioneer, as well as profit.
    Palm May Cap Pre Stockpile at Less Than 400,000 to Boost Cachet - Bloomberg.com

    I give up on trying to figure Palm out, but I'm beginning to understand how easily they have been knocked from their throne.
  2. TomD's Avatar
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    #2  
    There are several possibilities on what limit Palm will place on the first day availability.

    My guess is that Palm's cash is limited, so that may be the limiting factor.
    Tom
    Pilot Prō --> M100 --> Trēō 600 --> Trēō 700p -- > Prē
  3. #3  
    Actually, from a marketing standpoint, it's not a bad idea. Nintendo did the same thing with the Wii for two holiday seasons in a row - it worked out well for them.

    The thing is, the evening news isn't going to concentrate on Palm's limiting of supply - they can't confirm that Palm is doing so. What they will report on, however, is that Palm managed to sell completely out of its Pre stockpile in two or three days. They are increasing demand by decreasing supply.
    "'Form follows function' — that has been misunderstood. Form and function should be one, joined in a spiritual union."
    Frank Lloyd Wright
  4.    #4  
    "Palm's cash is limited..."

    This makes no sense. If their cash is limited then only a limited number has gone through manufacturing, and to increase cash you need sales.

    From a marketing standpoint it may make sense, but Palm is not Nintendo, and IMHO they've teased consumers enough. Particularly if June 7 rumor is true, which pits decision on Pre or 4G iPhone as much more detrimental to sales. How much longer will people wait?
  5. #5  
    The nintendo comparison doesn't quite work, although I see where you are coming from. Nintendo (most likely) created artificial demand for the Wii by generating huge buzz and limiting the supply. The problem, though, is that people were not required to switch to a different internet company, or use a specific brand of TV in order to play the Wii. The Pre, on the other hand, requires people to switch to Sprint in order to purchase and use a Pre. Limiting supply would kill it.

    The AT&T Iphone contracts are expiring soon, and Palm/Sprint need to try to get these users to switch carriers. If my AT&T contract was up and I wanted a Pre, but they were impossible to buy due to limited stock (like the Wii), the chances of me switching diminishes at an exponential rate. Add a new Iphone model into the mix and you really start to have problems.

    Sprint/Palm need to start marketing the hell out of this thing. As of right now, short of the fanatic user base on these boards, the public really isn't aware of the phone. It has been shown on the end of a few Sprint commercials, but they don't even mention what it is. They need to start beating everyone in the face with TV ads specifically for the Pre, like the Iphone has. They also need to focus these ads on specific features that make it better than the Iphone. Multitasking, Synergy, Touchstone. These are things they need to be marketing like crazy to be successful. An all out advertising assault on Apple is the only thing that is going to convince people to switch carriers.

    Most of all, they better do it soon or Palm is screwed.
  6. #6  
    This is the stupidiest thing I ever heard. Let me get this straight. Come June 7, I take myself and my credit card to the Sprint store and ask to purchase a Pre. They then tell me they cant take my money because they want to allure customers with a designed shortage.

    Keep in mind a few days later a new iPhone will become available (by the way, Apple will have millions of devices ready for sale). My credit card will be used at the Sprint store or the Apple store.

    Is Palm trying to kill itself?
  7. KJ78's Avatar
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    #7  
    I would not be surprised if something like this is true. The limit may be more unintentional, due to Palm not having the cash to fund a huge production run, nor willing to risk the opportunity cost of having all of its assets tied up in inventory. If the Pre sells well, Palm will have cash coming in and financing will be more available to fund more production.
  8. #8  
    Palm and Sprint can't be that dumb?
    Palm?
    Sprint?
    Hmm?
    It's bad enough I have to change my plan to get a Pre but then to not be able to find one?
    Sigh...
  9. #9  
    Quote Originally Posted by backlund View Post
    Sprint/Palm need to start marketing the hell out of this thing. As of right now, short of the fanatic user base on these boards, the public really isn't aware of the phone. It has been shown on the end of a few Sprint commercials, but they don't even mention what it is. They need to start beating everyone in the face with TV ads specifically for the Pre, like the Iphone has. They also need to focus these ads on specific features that make it better than the Iphone. Multitasking, Synergy, Touchstone. These are things they need to be marketing like crazy to be successful. An all out advertising assault on Apple is the only thing that is going to convince people to switch carriers.

    Most of all, they better do it soon or Palm is screwed.
    Let me just slightly rephrase one of your previous sentences:
    If my AT&T contract was up and I wanted a Pre, but they were impossible to buy due to not being released yet, the chances of me switching diminishes at an exponential rate.
    I don't think palm or sprint will, nor should they, start advertising until after the device is released and avaliable to those not willing to stand in line on release day.
  10. #10  
    Quote Originally Posted by asforme View Post
    Let me just slightly rephrase one of your previous sentences:


    I don't think palm or sprint will, nor should they, start advertising until after the device is released and avaliable to those not willing to stand in line on release day.
    I disagree. The Iphone was advertised and marketed like crazy before it was released. There is a very simple solution to that problem. The end of the ad (print, video, etc.) has in giant print the release date, followed by the Sprint logo.

    Creating demand after the release is (assumedly) putting it way too close to the new Iphone. The best thing to do would be create a massive demand for the phone via advertising, and have enough to go around on day one (obviously this is a difficult thing to do). The best way to get more people on Sprint using Pre's before the next Iphone, is to have as many people as possible already using them and showing others why they need this phone. Considering that there is rumored to be a new Apple announcement the day after the currently presumed Pre release date, trying to create that demand after it's release would be VERY difficult. Especially if supply is limited.
  11. #11  
    I don't think they need to start the Ad blitz just yet for the Pre. June 7th is still pretty far away. It's coming..just isn't time yet.
  12. #12  
    Quote Originally Posted by mobileman View Post
    This is the stupidiest thing I ever heard. Let me get this straight. Come June 7, I take myself and my credit card to the Sprint store and ask to purchase a Pre. They then tell me they cant take my money because they want to allure customers with a designed shortage.

    Keep in mind a few days later a new iPhone will become available (by the way, Apple will have millions of devices ready for sale). My credit card will be used at the Sprint store or the Apple store.

    Is Palm trying to kill itself?
    Do you think this is something that Palm would actually publicize? If you go to the Sprint store and their out of Pre phones, they're going to tell you that they sold out, not that they're artificially limiting supply so as to create the allure of demand.

    "Hi, I'd like to buy a Pre."
    "I'm sorry Sir, but we sold out of Pre phones a few hours ago."
    "What do you mean?"
    "They're all gone."
    "Why?"

    Now, pick which one you think any store rep with half a brain (most of those at Sprint) would say:
    "I guess they were popular phones. We should be getting more in about a week."
    OR
    "We purposefully kept only a few in stock so it'd look like the phone was really popular."
    "'Form follows function' — that has been misunderstood. Form and function should be one, joined in a spiritual union."
    Frank Lloyd Wright
  13. #13  
    Quote Originally Posted by Captain Hair View Post
    Do you think this is something that Palm would actually publicize? If you go to the Sprint store and their out of Pre phones, they're going to tell you that they sold out, not that they're artificially limiting supply so as to create the allure of demand.

    "Hi, I'd like to buy a Pre."
    "I'm sorry Sir, but we sold out of Pre phones a few hours ago."
    "What do you mean?"
    "They're all gone."
    "Why?"

    Now, pick which one you think any store rep with half a brain (most of those at Sprint) would say:
    "I guess they were popular phones. We should be getting more in about a week."
    OR
    "We purposefully kept only a few in stock so it'd look like the phone was really popular."
    Bottom line, I'm going home without a Pre. Sprint/Palm do not have my money. I get frustrated trying to find a pre. Later that night, I see the media going crazy over the new iPhone. The next day I am waiting on line at the Apple store with 500 other crazy people.
  14. #14  
    Quote Originally Posted by mobileman View Post
    Bottom line, I'm going home without a Pre. Sprint/Palm do not have my money. I get frustrated trying to find a pre. Later that night, I see the media going crazy over the new iPhone. The next day I am waiting on line at the Apple store with 500 other crazy people.
    You're clearly a very fickle consumer. If you went into the Sprint store with the intention to buy a Pre, clearly that's what you wanted from the start.
    "'Form follows function' — that has been misunderstood. Form and function should be one, joined in a spiritual union."
    Frank Lloyd Wright
  15. #15  
    The guys at bloomberg should read the trade press and not just repeat what a damage control flack at Palm or Spritn is saying as we see refelcted in the news peice.

    There is a known and reported shortage of one of the components, the specialized screen.

    Hesse at Sprint himself hinted at this a couple of months ago by himself bringing that they wanted to insure adequate supply. he would not have said it if there were not supply issues.

    Also Palm has very little cash. When Palm made the order contracts with the makers of the Pre they may have been small initial numbers simply due to lack of money from Palm.
  16. #16  
    Apple isn't releasing anything in June, they're simply going to try to convince its users that its next underwhelming iphone is worth having. Video recording, more storage...hold me back..
  17. #17  
    Quote Originally Posted by aero View Post
    The guys at bloomberg should read the trade press and not just repeat what a damage control flack at Palm or Spritn is saying as we see refelcted in the news peice.

    There is a known and reported shortage of one of the components, the specialized screen.

    Hesse at Sprint himself hinted at this a couple of months ago by himself bringing that they wanted to insure adequate supply. he would not have said it if there were not supply issues.

    Also Palm has very little cash. When Palm made the order contracts with the makers of the Pre they may have been small initial numbers simply due to lack of money from Palm.
    +537,000,000 x Infinity.

    This is an unsourced article of guesses based on nothing more than uninformed speculation that people in this forum could create.
  18. #18  
    Quote Originally Posted by cardfan View Post
    Apple isn't releasing anything in June, they're simply going to try to convince its users that its next underwhelming iphone is worth having. Video recording, more storage...hold me back..
    Yep, 17 million unhappy users.
  19. #19  
    Quote Originally Posted by Captain Hair View Post
    You're clearly a very fickle consumer. If you went into the Sprint store with the intention to buy a Pre, clearly that's what you wanted from the start.
    And you clearly are not willing to say Palm is making a mistake. It is stupid and pointless for a company barely holding on to make an artificial shortage and hope people are willing to wait on their product.
  20. #20  
    Quote Originally Posted by mobileman View Post
    And you clearly are not willing to say Palm is making a mistake. It is stupid and pointless for a company barely holding on to make an artificial shortage and hope people are willing to wait on their product.
    Good thing we know for a fact that this actually is Palm's strategy, eh?
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