"It's free. The Palm Pre."

**ttcoupe** · 02/05/2009, 07:36 AM

What if?

Why do they all insist that is must be pronounced so that it rhymes with "free"?

**BMIC50** · 02/05/2009, 07:51 AM

Free...not even a possibility. Palm even said that they will price it competitively with the iPhone.

Sorry to burst your bubble...

**B-model#CB** · 02/05/2009, 08:32 AM

Originally Posted by ttcoupe

What if?

Why do they all insist that is must be pronounced so that it rhymes with "free"?

have you been drinking ?

**ttcoupe** · 02/05/2009, 08:36 AM

Well, unlocked Pre seems to be about $200 cheaper than Apple iPhone:

Elite-Electronix - Palm Pre GSM - unlocked

So, with similarly priced plans, why could it not be free?

**B-model#CB** · 02/05/2009, 08:41 AM

kudos for finding this web site. howwever, since pricing for the pre has not been annoucned, this web site had completely bogus prices.

ASlo- to the best of my knowledge, Apple does not sell unlocked IPhone. I'm sure an iphone iuser on this site can confirm this.

**ttcoupe** · 02/05/2009, 08:48 AM

Yes, they are just guessing the prices.

But my question is: What if?

What if Pre is $200 cheaper unsubsidized?

What if Pre is offered with iPhone-like plans?

What if Pre is "free"?

**galavanter** · 02/05/2009, 08:53 AM

Originally Posted by ttcoupe

Yes, they are just guessing the prices.

But my question is: What if?

What if Pre is $200 cheaper unsubsidized?

What if Pre is offered with iPhone-like plans?

What if Pre is "free"?

C&V from here: Palm Pre - Wikipedia, the free encyclopedia

Pricing

Initial pricing details have not yet been revealed. However, when Palm's CEO Ed Colligan was asked whether the Palm Pre would cost significantly less than the U.S. $200 of the iPhone in order to gain market share, his reply was "Why would we do that when we have a significantly better product?"

**ttcoupe** · 02/05/2009, 08:56 AM

That is what he must say, because it is a better product.

**galavanter** · 02/05/2009, 09:01 AM

Originally Posted by ttcoupe

That is what he must say, because it is a better product.

Speculation of his motives aside, he said it. This board is getting to the point where speculation is given more credence than actual statements from company executives.

I think one could justifiably interpret his comment as "Free? Bite me!"

**ttcoupe** · 02/05/2009, 09:07 AM

Of course he says it is a better product. He says so because he wants to give such an impression and he says so because it is.

That does not rule out the possibility that Palm comes out with a proposition: hey we have the best product and guess what, it is also free for you!

And of course, any cost of the device can be priced to the plans, if wanted.

**ttcoupe** · 02/05/2009, 09:11 AM

One euro iPhone:
T-Mobile offers one Euro iPhone - iPod/iPhone - Macworld UK

**TurboTiger** · 02/05/2009, 09:13 AM

Never heard of an unlocked iPhone.
Good Luck

**ttcoupe** · 02/05/2009, 09:18 AM

"With the exception of Hong Kong that is. Apple has now started selling official, unlocked iPhone 3G handsets in its online store, allowing Chinese customers the opportunity to pick their favourite network and get full use of the handset and all its official functions no matter which carrier they choose."

Apple selling official, unlocked iPhone 3G | T3 magazine

**tostler** · 02/05/2009, 09:25 AM

I'm sure elevation partners has an expectation or profits sometime in the forseeable future, and that would mean a competitive price on the Pre.
Free it ain't gonna be.

**galavanter** · 02/05/2009, 09:26 AM

C'mon man get real. Comparing iPhone evolutionary pricing (almost YEARS after launch and after many millions sold) to Pre's initial rollout pricing is not.
Iphone release price? 600 bucks. I know cause I paid it, although I returned it.

**Rhody** · 02/05/2009, 09:31 AM

The only way I can see it being free is if there is a mandatory monthly service fee for cloud-based PIM and the like. So for example, a $15/month fee gets you a Pre and online calendar, online backup, online contacts, email account, online tasks and notes, and a portal to add even more fee-based services. That would be an interesting business model. It's pretty far fetched though.

**ttcoupe** · 02/05/2009, 09:32 AM

One more question about this subject.

Suppose that Pre would be cheaper than you would have expected, but the plans were a little more expensive than you would have expected.

Would that have any positive or negative effect to it's success?

**ttcoupe** · 02/05/2009, 09:35 AM

Originally Posted by Rhody

The only way I can see it being free is if there is a mandatory monthly service fee for cloud-based PIM and the like. So for example, a $15/month fee gets you a Pre and online calendar, online backup, online contacts, email account, online tasks and notes, and a portal to add even more fee-based services. That would be an interesting business model. It's pretty far fetched though.

And what if that fee is included to the pricing of the plans? iPhone has such plans in some countries (see the one euro iPhone link).

**B-model#CB** · 02/05/2009, 12:08 PM

ok, Ok .... I;m gonna try to think like ttcoupe for a minute

let's say the Palm Web OS is less expensive. and the hardware, not held back by the old OS, is also less expesnsive. example 1 chip for Bluetooth, GPS, Voice, Data (i have no idea if that actually exist, but you get the point).

So the price before any carried rebates comes in under about 350.

Sprint:
100 instant savings
200 new 2 year
50 for buying on website.

all 350 rebated. Phone comes for free.

The problem with this is "why". What is the benefit of making the phone free?

IF Sprint forces us to have the everything plan, will they make the money back plus,plus in 2 years?

Would Palm make more money by selling alot of these through sprint, earning only a small amount per phone? Amke less per phone ,but sell more??

When I stop thinking like ttcoupe and think like B-model, i find the business reason for this not appropriate for a SMART phone. Just my opinion

**ttcoupe** · 02/05/2009, 12:26 PM

In US many phones are similarly free. It seems that the customer is more willing to take the deal if the up-front cost is lower. Also, the customer thinks that the price difference between $100 (subsidized) phone and $200 (subsidized) phone is large, but the 100% difference is caused by the subsidy model of pricing.

Cloud usage model of Pre requires quite expensive plans, I suppose. Why not use the above mentioned customer "stupidity" to the fullest and make the handset free and the plans expensive. Sprint would of course pay Palm the price of the handset and Palm would not necessarily need to sell any extra units. But would it?

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