Why the Palm Pre must launch at $149
Sprint's service plans for the Pre appear to be very similar to those of the iPhone, which means it's highly likely Sprint will release the Pre at $199 ($299 would be suicide). Sprint has already announced that individual Pre plans will come in three flavors: you'll pay $69.99 per month for 450 minutes, $89.99 per month for 900 minutes, or $99.99 per month for unlimited talk, with each plan including unlimited data. Meanwhile, the iPhone's base plan currently starts at $69.99 with 450 minutes and unlimited data. AT&T's 900-minute plan goes for $89.99. Where you save with Sprint is if you go with the unlimited plan, which currently costs $30 more with AT&T. (None of these prices includes taxes, of course).
Personally, that doesn't sound all that enticing. As I wrote recently, I'm a Sprint customer who owns a Windows Mobile phone (the Mogul) and has a two-year contract that expires in June. I should also point out that my current service plan (with unlimited data) is about $15 less than what a new plan with the Pre would cost me.
Call me crazy, but I actually like Sprint and would prefer not to switch because I think it's a better carrier than people give it credit for (and there's no great love out there for AT&T). I also appreciate that I don't have to worry--at least not yet--about restrictions on tethering (using my Mogul as a modem) or streaming my Slingbox to the phone using Sprint's 3G (and soon 4G) network.
But facts are facts and numbers are numbers. Why would I buy a first-gen Pre over a third-gen iPhone with a huge, mature App Store if their prices and cost of ownership were identical outside the "unlimited" plan? I don't hate AT&T that much (my wife actually has a BlackBerry Curve from AT&T) and while I've been a loyal Sprint subscriber for more than 10 years, I'm not that loyal.
Nobody is. Which is why Sprint will get some switchers during the period (through 2009) that it has an exclusive on the Pre. There are still hardcore Palm fans out there and lots of iPhone haters. But at $199, I don't think you're looking at game-changing numbers, especially if AT&T counters by lowering the price on the 16GB iPhone--or lowering the price for its unlimited plan.
The Pre at $149.99 may not be a game changer for Sprint either. But at least $149.99 gives it a fighting chance.
What do you think?
Hunkered down in New York City, Executive Editor David Carnoy covers the gamut of gadgets and writes his Fully Equipped column, which carries the tag line "The electronics you lust for." He's also the author of "Knife Music," a novel. E-mail David. Follow David on Twitter.
Sprint and Palm should be very careful though, there are a lot of people who aren't as patient as me. The longer they delay the release = the more customers they risk losing.
If the price is too high, people will buy an iPhone.
If the price is too low it is tantamount to admitting its inferiority to the iPhone, so people will buy an iPhone.
Plus, I've been with Sprint for 10 years now and I haven't had very many issues either with calls or with service and if it ain't broke...
Get the Simply Everything family from Sprint and you end up with a $169.99 plan with a good number of shared minutes, plus data and unlimited texts all included. Plus, if you add a line its 19.99 and shares all the pluses of the others. Unlike adding an iPhone for $9.99 plus an extra $30 for data...
If you want to save some money, David, get your wife to switch over to Sprint and share a data plan...
(I'm still undecided about the Pre vs. the iPhone--waiting for a good CNet review)
If you think about it, it is not about the Pre it is about WebOs. That is the future of Palm, they want to get WebOs in as many hands as possible. And to do that they have to sell as many Pre' as possible.
There are a lot of us out there who don't text but do email. So a voice+data plan would be ideal and will save us some monthly costs.
At&T does the same thing with iphone, their $69.99 plan includes voice and Data, whereas sprint throws in the texting too, but may be give us $10 bucks off instead of unlimited text.
what do you folks out there think?
Before the new plans, each seperate option would add another code to your account and eventually make your bill an list of unrecognizable items. By bundling it all together, it allows for a cleaner bill with easier understanding on the customer's part.
The majority of people are using text nowadays and offering a Voice/Data plan only would really only cater to a niche audience.
As for the Pre, If they don't come out with it soon and within the margin that you said, they might have a real issue attracting subscribers from other carriers.
Unlimited data: Web surfing, email, BlackBerry Internet Services (BIS), GPS Navigation, Music Premier, TV Premier, NFL Mobile Live, NASCAR Sprint Cup MobileSM
Unlimited Direct Connect: Direct Connect and Group Connect (for capable phones)
Unlimited messaging: Text, pictures and video
Talk: Unlimited mobile to mobile, night calling and weekends starting at 7 p.m., nationwide long distance and no roaming charges
In contrast to what you said AT&T does not offer all of these features at the same prices. I would say that they do not have a plan that could match Sprint at all. There are also extra cost for having a Blackberry or an iphone. Contrary to popular belief as far as carriers go I think Sprint is hard to beat right now.
I do agree with your assessment on the release price of the Palm Pre. If Sprint/Palm do not hit the right price point it will be certain doom for Palm and a large hit for Sprint.
All amazing apps that go way beyond anything I ever had for my Windows Mobile phones.
-Mart
If you had to pay for these apps I sure hope they look great.
The most important thing that will make or break the phone is the app store. I started www.mojodn.com which for now is just a forum to have a place for people to learn how to program for the pre. While we don't have alot of information as of yet to program, we need to get the discussion going and get the community interested in development.
Please join me at the site and get the forum going while I prepare the actual website for release.
seigex
www.mojodn.com
By the way, last night I saw a couple of ads of Sprint advertising their 4G network on New York. let it be true :D and would be cool if Palm would add a 4G chip in their phone :)
If you want new accounts then Sprint need to price the phone at $149 and advertised the phone like the instinct. I don't understand why wasn't the HTC pro and diamond advertised like the instinct??
Where I think Sprint could seal the deal and clean house is by making two minor adjustments:
a) Drop the "Everything" plan to $89 MRC and drop other plans $10 each.
- The unlimited plans are the way of the future. Time for Sprint to take the lead and differentiate themselves "NOW" (also pun intended).
b) Make all plans follow in the foot steps of Boost Mobile and make the MRC a "no surprises" plan; roll all taxes and surcharges into the plan price. $89 means $89.00 monthly. Period.
- Setting customer expectations = customer loyalty and happiness for ever. No one likes surprises when they get that bill. No one.
These two small adjustments would make for major game changing in the industry. Sprint could not keep up with customer sign-ups if they did those two things. Guaranteed.
If Palm wants to ride its current wave of media interest it needs to price the Pre no higher than $199. At that price, the Touchstone should be included too. If the Pre is too expensive or does not perform, there is no question that I will be moving to AT&T to get an iphone. I hope that Palm is listening. I will be thrilled if the Pre works as expected, is affordable, and allows me to stay with Sprint. It all depends what Palm decides to do.
Oh, and hurry up Palm. We're getting impatient. Make us proud!
Unlimited text and data with sprint and also includes Navigation is 99 per month.
Unlimited text and data with AT&T that doesn't include navigation is 149 per month.
Unlimited text and data and verizon navigation for a Storm would be 159 a month.
Tell me again why Sprint needs to lowball the Pre when over the course the year, you'd save all kinds of money with Sprint? The Pre could cost 299 and you'd still save more money easily. In addition the lower plans of Sprint are even cheaper if you go to their SERO site. http://delivery.sprint.com/m/p/sprint/epc/epclanding.asp
Saving $30 a month on your service is meaningless if you can't afford the $300 tab up front.
The Pre MUST come in below the iPhone in cost. Then the monthly savings is the selling point to offset the initial lack of apps (sorry, emulator mode for the old Palm OS doesn't count) and what will certainly be an inferior music player experience.
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by Nerfman
April 7, 2009 10:56 AM PDT
- You are right on. If Palm and Sprint are going to change their fortunes and make an impact in this market with a first time handselt they need to be agressive.
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