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Palm backer sees Pre luring iPhone users

updated 10:00 am EST, Fri March 6, 2009

Pre May Lure iPhone Users

Palm's upcoming Pre is likely to poach customers away from the iPhone, Elevation Partners founder Roger McNamee said in an interview late yesterday. The investor in Palm told Bloomberg he's confident that those who bought the iPhone on its 2007 launch are likely to switch to the Pre as they're both attracted to whichever is the "coolest" device on the market and will no longer be tied to an AT&T contract. This would let them jump to Sprint for the Palm phone, which he predicted will happen en masse.

"You know the beautiful thing: June 29, 2009, is the two-year anniversary of the first shipment of the iPhone," McNamee noted. "Not one of those people will still be using an iPhone a month later."

While his particular reasoning isn't made clear, the Pre is the first phone to use the multi-touch capable webOS and has a number of software features that aren't currently available on an iPhone, including true multitasking and a unique calendar and contact system that merges information from multiple sources, such Facebook and Exchange. It also adds a hardware QWERTY keyboard and a higher-resolution camera.

Regardless of its potential advantages, the Pre will need a significant launch to revitalize Palm. The Sunnyvale, California company has warned it's running low on funds and is seeing declining sales as customers avoid buying Centros or Treos while they wait for the Pre's launch in the first half of this year.

The competing smartphone should also face pressure from a future iPhone revision as well as loyalty to the iPhone created by software purchases on the App Store, neither of which was mentioned by McNamee.



By Electronista Staff
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  1. macvette

    Fresh-Faced Recruit

    Joined: Feb 2004

    0

    The guy is biased...

    "The investor in Palm told Bloomberg he's confident..."

    And remember who the carrier is:
    "Palm intends to release the first version of the Pre through Sprint in the first half of the year, with pricing to be set later."

    http://www.electronista.com/articles/09/01/08/palm.pre.at.ces/

    Sprint is having plenty of trouble keeping subscribers these days...

    I'll be keeping my iPhone!

  1. hassanpr

    Fresh-Faced Recruit

    Joined: Aug 2004

    +3

    LOL

    LOL LOL LOL. This isnt comedy centrals website is it.

  1. nativeNYer

    Fresh-Faced Recruit

    Joined: Apr 2005

    +1

    Hahaha

    "You know the beautiful thing: June 29, 2009, is the two-year anniversary of the first shipment of the iPhone," McNamee noted. "Not one of those people will still be using an iPhone a month later."

    LOL! That was friggin' hilarious! I don't know what kind of happy stuff this guy is smoking, but I think I want some. Then I can come up with deranged statements like this.

    OK, to be fair, I can see a few customers jumping to the Pre, but en masse? All of them? This guy's more of a lunatic than Steve Ballmer. Even Ballmer wouldn't say something so crazy.

  1. Salty

    Professional Poster

    Joined: Jul 2005

    +1

    He's right

    He's right not one of those people will be using iPhones, they'll be using iPhone 3Gs, or they'll have bought whatever new phone Apple throws out. Smart analyst.

  1. danangdoc

    Junior Member

    Joined: Jan 2007

    +1

    Agreed

    Yeah, after we've purchased a number of amazing apps, and hundreds of songs (if not thousands) and movies, we're just going to toss our phones? This man is clearly delusional, and should get a psych evaluation. He may harm himself. Palm would have done better to deal with Verizon, but Sprint? Sprint? Bwaaaah haaaa haaaa haaaa haaaa!

  1. dliup

    Fresh-Faced Recruit

    Joined: Jan 2006

    -2

    analysis

    Here is a better analysis on the pre.

    roughlydrafted.com/2009/01/12/palm-pre-the-emperors-new-phone/

  1. iDoctor

    Fresh-Faced Recruit

    Joined: Feb 2001

    +1

    Funny guy !

    What is funny about all this .. that Palm is comparing a yet to be launched product to a 2007 iPhone .. even with the upgrades .. the iPhone has not received a major upgrade in a while ..
    So do you think that Apple engineers are picking their nose waiting for those guys?!!
    I bet you after the next major iPhone upgrade (? June) .. the Palm Pre will look retro !

  1. resuna

    Fresh-Faced Recruit

    Joined: Jan 2005

    -1

    Palm lost the plot...

    Palm lost the plot when they decided that they needed to make Palm OS faster and shinier and more like Pocket PC, instead of noticing that Palm had 80% market share and Pocket PC had 20% market share and maybe they should play to their strengths instead...

    Now they're throwing away their existing application and user base. IDGI.

  1. ff11

    Fresh-Faced Recruit

    Joined: Apr 2004

    +1

    Wow!

    While I'm not discounting the Palm Pre, or questioning whether some iPhone users will switch to it, McNamee PROVES himself to be delusional beyond the shadow of a doubt when he states that not one of the original iPhone users will still be using iPhones within a month of his product's release.

    A more likely best case scenario for Palm is that by that time, they will have fixed most of the major bugs with their phone.

    The next couple of years will be pretty cut throat in the smart phone arena with the iPhone, several Blueberries (most notably the curve), and a whole host of Android phones. Palm's survival is by no means assured.

  1. ff11

    Fresh-Faced Recruit

    Joined: Apr 2004

    0

    Wow!

    While I'm not discounting the Palm Pre, or questioning whether some iPhone users will switch to it, McNamee PROVES himself to be delusional beyond the shadow of a doubt when he states that not one of the original iPhone users will still be using iPhones within a month of his product's release.

    A more likely best case scenario for Palm is that by that time, they will have fixed most of the major bugs with their phone.

    The next couple of years will be pretty cut throat in the smart phone arena with the iPhone, several Blueberries (most notably the curve), and a whole host of Android phones. Palm's survival is by no means assured.

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