In a recent MarketWatch article on Microsoft's struggling Zune portable media player, reporter John Letzing got an interesting quote from George Kurian, a vice president at Tradition Capital Management LLC, which owns Microsoft shares.
"Microsoft should abandon Zune and follow Apple's strategy to try to make its presence felt in the high-growth smartphone sector," Kurian said. He then went on to suggest that the easiest way for Microsoft to do that would be to buy Palm.
Palm and Microsoft have hooked up before, so why not quit fooling around and really tie the knot?
(Credit: Sprint)"Microsoft might pay tens of billions of dollars for Yahoo; it could pick up Palm instead for just $1 billion or $2 billion and then spend several hundred million more on transforming the Pre's user interface into a mobile OS that can run on phones made by multiple vendors," Manjoo wrote. "Microsoft would also gain a loyal Palm audience--and a base of developers looking to create apps for the device. And then Microsoft would have money left over to buy other software companies--start-ups and established firms that power the next generation of devices, or that are pioneers in the selling online software to companies."
More recently, Gary Marshall over at Techradar.com took a whack at why Microsoft should ante up for Palm. He pointed out that buying Palm "would bring the Pre's designers to Windows Phone, and it would annoy Steve Jobs, too" because the Pre team includes Jon Rubenstein, former vice president of Apple's iPod division, and former Apple developers' champion Chuq Von Rospach. Also, in the same article, Andrew Kitson, senior analyst with Juniper Research, said that a WebOS-powered smartphone would be a nice item to sell in Microsoft's forthcoming retail stores.
What's interesting about this growing cry for Microsoft to buy Palm is that a lot of people seem to be rather dismissive of Microsoft's own smartphone operating system, Windows Mobile. ... Read More
CNET News Poll
I usually follow a simple rule when it comes to consumer electronics: I avoid buying any first-generation products. That doesn't mean I haven't ever done it, but I tend to wait for generation two or three before I plunk down my dough, particularly when it comes to heavily hyped stuff.
As I've written before, I'm a prime candidate to buy the Palm Pre. I'm a Sprint customer who has a contract conveniently expiring in June and I have a phone (the Mogul) that's on its last legs. Ideally, the Pre would cost $50 less and not have a mail-in rebate, but at least Sprint didn't price the thing at a pure $299, as I'm sure it would have preferred to do. Pricing aside, the biggest hurdle I'm facing is the fact that the Palm Pre is a first-gen phone--and platform--and I'm really not a first-gen guy.
By contrast, the iPhone will be on its third generation and its platform is already fairly mature. We'll find out exactly how the new third-generation iPhone specs out at next week's WWDC event, but it's safe to assume that many of the small, nagging kinks that were found in earlier editions of the iPhone will have been ironed out. I don't expect it to be perfect (no phone ever will be, because there's always something better around the corner), but I feel pretty good about getting a lot more iPhone for my $199 than those who purchased the original non-3G model (which was originally $599--with contract!) or even the iPhone 3G.
Sometimes, of course, a brand new product can come along that's so far ahead of the pack that even the introductory version is too tempting to avoid. ... Read More
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?
Windows Mobile 6.5 is rumored to offer cosmetic upgrades, not major feature changes.
(Credit: Mobilemag.com)For all the talk there's been about Microsoft's big Vista problem, much less has been made of its smaller operating system, Windows Mobile, which has some major problems of its own. Truth be told, I'm a longtime Windows Mobile user and I have to say it's been a frustrating ride. There are things I really like about the OS--and things I find really irritating. However, the frustration stems from the fact that every time I think it's really going to turn a corner, Windows Mobile continues to disappoint. And I'm seriously considering giving up on it.
Take my current situation. ... Read More
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