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  1. SharonW's Avatar
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       #1  
    From Barron's Tech Blog:

    In contrast to a recent spate of reports saying Palm’s (PALM) “Pre” smartphone is seeing slowing sales at Sprint (S) stores, Pacific Crest analyst James Faucette today reports that his own “checks” show that “sell-through of the Pre remains robust,” with adequate supply at Sprint stores. However, he thinks sales are less than they could be given that Best Buy (BBY) and RadioShack (RSH) have almost not inventory on hand.

    After selling 70,000 units in the first few days of availability starting on June 5, Faucette thinks sales have “normalized” at a rate of 40,000 per week. He thinks that level will be consistent through August assuming an improvement in supply at Best Buy and the rest.

    Faucette’s belief that supply is constraining demand is in contrast to analysts such as Pali Capital’s Walter Piecyk, who believe Palm has astutely managed supply and that in fact demand is tapering off for the Pre. Piecyk wrote yesterday that sales had dropped to “over 30,000 units” last week from “under 40,000 units” in the week prior.

    Palm will probably have a “mid-tier” device using the same Web OS software as the Pre with AT&T (T) by the holdiay season, writes Faucette, and other models at other carriers could add to his estimates, which right now have Palm making $1.6 billion in sales and losing 32 cents a share this year, rising to sales of $1.8 billion and 22 cents profit next year.

    Faucette has an “Outperform” rating on shares of Palm and a $17 12-month price target.
    Tech Trader Daily - Barron’s Online : Take That! Palm Pre Sales Still Strong, Pac Crest Says
  2. #2  
    Great news.
  3. #3  
    I think the number floating around is they needs around 5.5 million units over a year to survive. They SHOULD be able to hit that mark world wide depending on how Europe receives the phone. I'm not counting on AT&T's EOS to do much its a fairly low end device for the same money a 3g Iphone would probably be more attractive to most.
  4. SharonW's Avatar
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       #4  
    Quote Originally Posted by Aridon View Post
    I think the number floating around is they needs around 5.5 million units over a year to survive. They SHOULD be able to hit that mark world wide depending on how Europe receives the phone. I'm not counting on AT&T's EOS to do much its a fairly low end device for the same money a 3g Iphone would probably be more attractive to most.
    Well, I recall the UK's Guardian did a poll about two months ago, maybe less, that showed a HUGE demand for the Pre, far bigger than demand for the iPhone. It was something like 80% who planned on buying the Pre.
  5. yoshk's Avatar
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    #5  
    Demand is still high for the Pre. The main issue is that almost the only place to get the Pre is from a corporate store (BB and Radio Shack have too limited a supply), and many of my local customers simply won't deal with our local corporate store. My waiting list still has over 20 people even after a month and many of my customers have given up and gone to BB or the corporate store for their Pre.
    Once supply evens out and ALL Sprint stores as well as BB and Radio shack can sell the phone with no more supply constraints will the demand be filled. My guess is this will begin to happen in early August.
    Store Manager, Authorized Sprint Retailer and Authorized Service Center for Sprint/Nextel devices. Please post inquiries to the "Ask a Sprint rep" sticky on the CDMA North America forum.
    Rocking the Evo Shift 4G till Pre3 lands.
  6. Leke's Avatar
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    #6  
    This is really good. I suspect this "supposed" Pre shortage is really a marketing scheme, a very good one...

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