Sprint strikes back: Pre exclusive through 2009 25
by Derek Kessler
Fri, 29 May 2009 2:50 pm EDT
Fri, 29 May 2009 2:50 pm EDT 
In recent days the CEOs of AT&T and Verizon have dealt a double whammy of blows to Sprint’s Palm Pre exclusive. While nobody had confirmed how long that exclusive was going to last, Sprint’s two larger competitors came out saying that they wanted to grab the Pre after the exclusive expired. Needless to say, Dan Hesse’s none-too-pleased about it, especially considering that Sprint was the one network that decided to risk it with the Pre. So Sprint has come out and admitted to the Wall Street Journal that their exclusive with the Pre will last until the end of the year. Good news for Palm, not-so-great news for Sprint.
Thanks to everyone that sent this in!
25 Comments
There is always potential for an extension, AT&T has done it, even if it took the exclusive to 12 months. Though it's unlike me, I feel for Sprint here, they are really trying so hard to do the right thing by the customer and provide competitive options. I know a lot of you will dis me because you want it on other carriers.
We all want the Pre on other carriers - Palm can't survive on Sprint alone!
Palm isn't betting the Pre on just Sprint. Everyone seems to think the US is the only market that matters. Internationally, heck, even in North America, there will be other carriers having the phone. Clearly the U.S. market is big for Palm, and as Hesse said, Sprint was the only carrier to take the risk with Palm on this one, but it isn't the only market.
I love competition. The consumer always ends up winning. Sprint will have to be even more competitive and the more PRE's the more support it'll get.
I love competition as well, but I think Sprint needs the Pre and should try and extend its exclusivity on the Pre, and possibly the Pre 2. I personally like Sprint service though, but thats just because I get full EV-DO everywhere I go compared to my iPhone >_>
I never understand the complaints about the service. I have been with Sprint for 10 years now, and 7 of those years in Chicago, where sprint service is fantastic. But I travel alot for business, and I never have the problems everyone says there is. Sprint's plans are so much more competitive that AT&T and Verizon, I just don't get the angst.
But that is only my humble opinion, and I am sure people have their reasons. I just can't substantiate them myself.
So Dan Hesse wants to scream and yell about how he's got exclusivity through 2009, but he doesn't have enough units to meet demand? He's gonna loose customers that don't want to wait for new shipments when they get turned away. What a butt clown.
It's not Hesse's or Sprint's fault that Palm [maybe] couldn't produce enough units.
It's not even Palm's fault. Their manuf. is having trouble producing error free "motherboards", so they are having to hand test them which is delaying the shipments.
I'm on VZW now but cant wait another 6 plus months for the Pre! Also VZW is know for taking there time to test and cert new devices on their network. So it could be another 3 to 6 months before they offer it after the exclusive period ends.
Like I said, it will be at least 6 months to a year after sprints exclusivity for Verizon to launch this device:
1) Verizon has to remove features, for example cut the flash in half to 4gb. Remove access to the GPS unit, etc.
2) Software testing is very slow for verizon and they will turn the pre red with vcrap.
I am not sure why anyone wants a crippled device on a network that is more expensive. Also the storm 2 is set to drop soon. I dont think Verizon wants to endanger their exclusive on that, unless the fact that the storm is a POS is actually hurting them.
Verizon could start working on it now and have it ready for the beginning of next year. I don't think exclusivity means you can't start working on prototypes, etc.
I agree with miles4000
"Sprint was the one network that decided to risk it with the Pre." Does that mean Palm shopped the Pre to other US carriers? If that's the case, screw Verizon and ATT, I have no doubt Sprint will extend the contract, especially if the Pre does well. Yesterday Rubenstien said there aren't any relationships between Verizon and ATT regarding the Pre. Other words, Palm is not even working on a network branding for Verizon and ATT, so even if Sprint doesn't extend the contract it could be another 3 to 6 months after the 6 month exclusive before any other US carrier gets the Pre.
Most exclusivity agreements depend on how many units sold. Sprint has it through 2009. If they move 1million units maybe june 2010, 5million maybe EOY 2010. It all depends on how well teh device does. By then Sprint should be getting PreDos in which case I can see another exclusive. But it depends on contract. If its a hit I dont think Sprint will let it slide.
Folks, this is not some kind of revelation. This was know back in mid February at the latest...so what! I don't see why this would affect Sprint selling as many units as the get their hands on. Now, GIMME ONE! ;-)
If Palm wants to be successful, they're going to have to be on more than one carrier. They've done it with their Treo and Centro, so I don't see why the Pre would be exclusive to one carrier for very long.
Do you think the US is the only market? Palm sells phones worldwide, Canada is getting a CDMA version, Europe will be getting a GSM version, Australia is getting a version. This idea that Palm needs to open up to other US carriers to be successful is crazy.
Sprint needs to play keep extending the its exclusive rights to sell this product, and make sure that just like ATT did other company can get their grubby little paws on this phone. They should see that everyone was complaining that the Pre was on Sprint's network and saying that they were not going to get it until it came out on ATT or Verizon Wireless. If sprint decides not to extend this exclusive deal with Palm, I can almost guarantee that most people will wait for the pre to come out on ATT and Verizon. While the whole point of getting to pre was to entice new costumers to switch over to Sprint.
Maybe if Sprint makes a killing on this first six months of exclusivity, then they can dump a pile of money on Ed Colligan's desk (again) to extend the exclusive rights another six months...
Sprint deserves the exclusive right for the Pre for, at least, an year. The other carriers are doing two things. First is making consumer think twice about going to Sprint. They finally see the potential of the Pre and they worry they will lose their own subscribers to Sprint. So, how do they do this from happening, they come out and tell the consumers they will carry the Pre as well. Trust me, when people heard this, they are willing to wait it out. In other words, they are band-aid the wound before it happens. Another aspect is that both of these companies are waiting. Both AT&T and Verizon does not have any kind of agreement with Palm to sell the Pre and I promise you they won't even go to the table until several months after the Pre is released. They want to see how well it does. If it successful and works well, they will RUN to Palm to get it. If not, they won't get it and don't lose anything. In the end, Sprint is taking ALL of the risk. With that, Palm should give, at least one year. Consumers are one thing for sure, they will wait for something for months but never for an year.
This is funny no one has mention a follow up to the pre. This only the 8g version and it is their very first one. Something to think about.
This is funny no one has mention a follow up to the pre. This only the 8g version and it is their very first one. Something to think about.
It is great to see the carriers "fighting" over Pre. This only means we will see a stronger demand for Pre.
Am i missing something? Thru 2009.. there's half a year left... the 6 month time frame is more or less correct then.