Your guess is as good as ours as to to when the Palm Pre is actually getting released (you can always find our latest rumor-mongering on that very subject by clicking the graphic in the sidebar), but there's another unknown with the Pre: Price. Scott Moritz of TheStreet.com cites the now-standard guess of an iPhone-matching $199 after rebates, but then decided to throw a match into the Pre-speculation powder keg by suggesting that Sprint just might be desperate enough for a hit to price it at $150.
Our take: doubtful. We'd love to see the Pre come out at $150, but the $199 or $249 price point seems much more likely. As with the actual release date itself, we're also confident that the exact pricing will be a last-minute decision. The last time Sprint tried to make a big splash with a phone launch was with the original Samsung Instinct, the price for which wasn't set until literally a couple weeks before launch in a stab at beating out -- you guessed it -- the iPhone.
What do you think? Will Sprint and Palm try to undercut the $199 iPhone price? Price it higher? Will there be an "early adopters fee" price followed by a price drop 6 months later?
Thanks to lugose in our Palm Pre Forums for the tip!
Comments
First
$150 would be great!!!
$200 sounds right.
I hope it will be less than $250 otherwise Im calling retentions!!!
It would be great to see it @ $150, but I think it will be more. Maybe $200 - $250.
$250 guess here
$150 would be great
$199 is what I really feel the price would be.
$249.99 is a price that walks the fine line between making a big splash in the pool versus letting off a little flatulence just to see bubbles here and there(sorry for the bad analogy)
What is the total cost of the "Pre experience"?
24 month contract * $69 = $1656 (450 mins/unlimited data)
24 x $99 = $2376 (unlimited everything)
If $100 or $300, it won't change the cost much of the "Pre experience." I guess for the regular short-sighted person we have to care.
The Pre really needs to be at the $150 price point ($199 at MOST) to even be competitive I'm afraid.
Considering I once paid 400 bucks for a Treo 600, any of those prices sounds good.
I'd guess $199, but would have no problem paying $250
dead in the water if its priced above the iPhone. Within a few months will be a buy one get one free deal.
I heavily disagree. Considering that the iPhone has gradually been reduced in price from the insane price they asked for it at first. Let's not forget that the 3G is an older model, as in it didn't come out in 2009, so a direct comparison in price is oranges to radishes in this respect.
And plus, Mr. Colligan already gestured that they don't plan to compete directly with the iPhone. Although everyone seems to disagree with him, I agree. The Pre is a unique product in itself and it's success is closely tied to Palm and Sprint's ability to differentiate it from other smartphones.
I think $249 after a $100 rebate that requires the customer to sign up for a Simply Everything plan that's at least $69/month is sensible, considering the value proposition of the Pre on Sprint's plans, it wouldn't look pretentious or outrageous.
Just my opinion
$199 sounds about right but I have no problem paying $250. I could care less that the iphone is $50 dollars less. $50 dollars more for a better phone makes sense. Some idiots will be tricked because they want to save $50 dollars up front but will cry when they see their monthly bill and know that I have a better phone.
I just hope Palm/Sprint does not get greedy thinking all the current pre-hysteria will translate in paying more for a Pre than for an iPhone.
I think that $199 is the magic number. I am sure Sprint would like to be cheaper than the iPhone in every way, plan and hardware. But I am mostly agree with "nitido357" above. It will probably hit at something around $250 or $300 and then include a rebate to get it down to $200. Both prices I certainly would pay. I got my iPhone the day the price dropped at $400 and overall I am happy with it and the price I paid.
I also agree that it is a "oranges to radishes" comparison, but folks just see price and now. Now how much the device was a year ago.
In my eyes the silver bullet here would be something like $250 with a $100 rebate for a new contract with at least a $70/mo plan coupled with an overall bug free software Pre launch with a good amount of hardware out the door. Do those things Sprint and you have a winner I think!
- Kiteless
If they price it more then the iPhone it's curtains for the PRE. The reason verizon could charge so much for the iphone was because it had no other viable competitors.
verizon??? ................[cough] AT&T...
I bought some Palm stock and I want a Pre, so I can see both sides. I've been reading an interesting book on economics lately called "Why Popcorn Costs So Much At The Movies?" and in addition to the title question, they discuss the iPhone pricing quite a bit. It turns out that there is always more money to be made by pricing things high and then discounting that price over time. I think I paid about $500 for my 755p and the Centro came out a month later for about $100. I think the best bet would be to have it around $250 or more for a month, maybe two. This would maximize profits and give them time to ramp up production so that they could have lots of product out when they drop the price to $199 and then $150. This would also give Developers time to put out lots of apps by the time the masses start buying the phone. Remember, the Centro was supposed to be a budget entry into the Smartphone world, and they don't want the Pre to be seen as another "budget" phone. I don't think that there's any reason that a device which is better than the competition should NOT cost more, at least initially.
I don't think Palm will try to compete with the current iPhone in price. They are trying to establish the Pre as "better than the iPhone". In fact it should be priced closer to the next iPhone. Which, judging by Apple's pricing history, will be around $349-$399. If Palm prices the Pre around $249-$300 I would be willing to pay that and I would feel better about the longevity of the company.
People expect Apple products to cost more. People pay a premium for the MacBooks and iPods than their non-Mac counterparts. The same is true of the phone. People expect that the iphone competitors should be $50-$100 less than the iPhone. If it is the same price than it should be better. Basically, people are willing to pay more for the Apple brand, they are not willing to pay more for a Palm. If the Palm is $50-$100 less than most consumers will feel that it is a competing phone. It's all pretty wonky, but Apple does have a good propaganda department.
Am I the only person that has noticed that palm is "directly" following apples footsteps? My guess is that they will over price the pre, just like how the iphone was when it came out, then they will eventually lower the price. But I definitely wouldn't want them to do that. Anyways, look at the touch pro for sprint, currently the most expensive phone $299 after rebate. Pre is better than that phone for obvious reasons. So i say around that price or exactly that price. Take into consideration on how the economy is right now. Not a lot of people have have 400 buckaroos in their wallets at the moment so i feel that sprint might lower the price. Almost all companies are lowering prices (EVEN MACYS). Hell, you can get a good value meal at every fast food restaurant and restaurants alike.! (I know that my message wasn't clear on one argument and probably didn't make any sense but..... so what, i just want the pre)
How soon could a GSM model come out?
$150 for the Sprint one will help convince me to switch to Sprint and not wait for the unlocked GSM to get here.
Sprint will charge $199 with 2 year contract and $499 without a contract but will have to a Sprint customer already. The funny thing is that everyone who has written a comment on this website is going to get one whatever the price and yes even when its only on Sprint. As for your GSM lovers, you are going to wait for awhile. Of course, you can get an unlocked version from Europe or Asia when it comes out there. Of course, there's no guarantee that it will work here in the States. I'm convinced the next provider that will get the Pre will be Verizon.
I remember around this same time last year when the first sprint savior phone, THE LEGENDARY INSTINCT was about to be released there was so much hype around it and people were sayint it'd be $199, then it magically dropped to $129, When I called sprint to buy mine they told me I could get it for $69.99... Long story short sprint is in an even more desperate state then they are this year then last year and add to the fact that Palm is also in a rough place. Neither of the two companies can afford to over price the PRE this has the potential to be their saving grace and anything over 199 will surely doom them.
Tinycomb has an internal email from a Palm employee confriming the $150 price tag is true.
http://tinycomb.com/2009/04/27/150-price-point-confirmed-by-palm-employee/
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