Neutron :: Bomb

by John Calian |
Topics: iPhone | Palm Pre | Telefónica

News came online today the Palm Inc. is set to distribute it's new Pre smartphone exclusively via Telefónica SA, the EU wireless carrier that is the exclusive distributor of the Apple iPhone. (From PC World http://bit.ly/telefonica_palm_pre).

This is an interesting ploy by Palm, and begs the question of why would you line up your new iPhone-killer right next to the iPhone in Telefónica owned O2 shops in the UK? Its like lining up your new Porsche-killer right next to the Porsche Carrera GT2 in a showroom, expecting consumers who want a Porsche to buy yours.

My guess is that sales will drag in the EU for the Pre as consumers looking for an iPhone want an iPhone, not the next best thing. In the US, the Pre is sold exclusively by Sprint thru the end of 2009, at which time it is reported Verizon will be selling the Pre as well. This strategy at least presents smartphones in a segmented way. The other sane strategy would be to allow all carriers to sell a device... think RAZR.

Everyone views the Pre as the next best thing to the iPhone, and some hold out hope that the Pre will eventually go head to head with the Apple device. Palm needs to rev up its online marketplace for applications, the App Catalog, and needs to iron out some deficiencies such as battery life before it can really be seen as a true replacement of the iPhone.