Here's a few snippets from industry sources to help keep you on top of all the Pre news.
Will Dell produce an iPhone killer...or buy it? - Dell has been notably lacking in the smartphone department, especially with the recent battle between the Pre and iPhone. Some editors suggest Dell should acquire Palm (also stressed in a Barron's article). ComputerWorld reports Michael Dell stating, "buying other companies remains an option for expansion into the smartphone market but...acquisitions focus is elsewhere at present."
Recently, Dell has taken it into their own hands to churn out a viable smartphone, reports eWeek, but their prototypes got rejected due to "lack of differentiation versus current and upcoming products". They were running Windows Mobile and Google Android OS. To stand out, "it will likely involve vertical integration of services", said Kaufman Brothers analyst Shaw Wu. AppleInsider adds, "Dell's new prototypes simply didn't interest the carriers. Dell's phone...is too dull to stand out in a competitive environment". Is webOS the answer for them?
The shrinking global market for PCs has already sent other PC makers scrambling to enter the phone business, including Acer, Asustek and Lenovo, but relationships with carriers can't be gained overnight. Longtime phone makers Motorola and Sony are also in big trouble, with little to excite buyers and compete with Apple. So while Dell goes back to the drawing board, Palm may not have to worry about any more competitors before the launch of the Pre.
Read on for the rest of the news.
Palm loses $5 Million in a warehouse robbery - Precentral reports that as part of Palm's Q3 expanded losses, there was a $5M hit from a robbery. Palm CFO Doug Jeffries states "a five million casualty loss in Q3 from a theft which occured at one of our third party operated warehouse...we will recognize a recovery when we receive the insurace proceeds". Between money from remarketing Elevation shares to soon wear thin and huge Q3 losses, Palm will need that money ASAP for the launch of the Pre.
What if the Pre bombs? - Although the Pre is looking to make some waves, Crunchgear and eWeek present hypothetical worst-case scenarios for Palm. Money could be a problem, especially with revenue down almost $100M in Q3 and sales of older models sagging. Sprint has also been shedding subscribers, down 1.3 million subscribers with a net loss of $1.62 billion; hopefully, long-term exclusivity can help them. In addition, Roger McNamee, cofounder of Elevation (who own close to 40% in Palm), had his enthusiasm for the Pre shot down by Palm themselves. The iPhone has also been stealing a lot of Palm's thunder, with OS 3.0 dominating the headlines as of late. "There is no second chance for Palm", reports Tamspalm. Things will be dire for Palm if their new smartphone doesn't succeed, and Sprint is having their own challenges.
Palm Pre in the Sunday New York Times - Precentral reports that the Pre was featured in yesterday's business section of the NYT. This is great marketing for Palm, as the Sunday paper gets good exposure and discussion among families. The webOS handset has also been in living rooms on the late night show with Jimmy Fallon. In the article, Palm's positioning of the Pre is clarified by Palm Marketing VP, Brodie Keast, which is a "comfortable place between Apple and RIM". A Palm spokesperson adds that the "bet-the-company offering" is webOS itself, not the Pre. Also included is an old quote from Palm CEO Ed Colligan, before the Pre (and even before the iPhone). "We've struggled for a few years here figuring out how to make a decent phone", he states. Looks like they may have finally done it.
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