Pre price cut not necessarily a sign of poor sales | webOS Nation

Pre price cut not necessarily a sign of poor sales

by Derek Kessler Wed, 16 Sep 2009 9:13 am EDT

Palm Pre

While it’s clear that the Pre hasn’t sold quite as well as Palm and Sprint had hoped, that recent $50 price cut that hit the Pre isn’t necessarily a sign that the phone has sold much worse than expected and they have excess units on hand they need to move. As Computerworld notes that price cuts are a fact of life in today’s cutthroat technology market. On the same day that Palm revealed the Pixi and cut the Pre to $150, Apple cut prices on the iPod Touch. With the rate that technology is developed these days, it’s no surprise that prices get cut regularly. They say that once you leave the store with your new computer it’ll already be outdated; the same can be easily said for smartphones.

Most analysts have maintained that the Pre is selling well. In fact, Ramon Llamas of IDC market research said that “If you want to see inventory really move, then price the smartphone below $100.” To him, the price cut is a sign that Palm and Sprint are positioning themselves to be competitive against the $99 iPhone 3G going into the holiday season.

Analyst Jeffery Kagan agreed, saying, “No one Palm device will be a major breakthrough for any single carrier, and there might be modest sales from every carrier, but taken altogether those sales will show that Palm can be a strong company again.” Of course, first Palm has to get the Pre and Pixi (or other webOS phones) onto other carriers.

Thanks to Daniel for the tip!