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Palm may short Pre supply to create "cachet"

updated 03:30 pm EDT, Wed April 29, 2009

Palm May Short Pre Supply

Palm may deliberately keep supplies of the Pre artificially low to create a perceived shortage and spur demand, analysts estimate. Rather than ship as many as possible, the phone producer is believed by Bloomberg to be shipping about 375,000 devices in the first wave and to count on a relatively quick sellout. By making the phone elusive early on, Palm would both garner headlines and would help encourage better follow-up sales.

The company is expected to base its rollout on Apple's experiences with the iPhone 3G last year. Apple sold 1 million units on the July 2008 launch weekend and had sold out at nearly all of its own retail stores within several days. Shortages were common at stores for the first several weeks and were reflective of Apple's sales of 6.9 million iPhones during that summer.

Palm is heavily dependent on the Pre's launch to remain in business. The Sunnyvale-based company has been quickly burning through its cash as sales of its present-day phones continue to weaken and has taken to reselling shares to give itself enough funding to stay in business through at least the initial launch of the Pre, which is still on track for no later than June.

By Electronista Staff
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  1. climacs

    Mac Enthusiast

    Joined: Sep 2001


    or maybe

    they are so cash-poor they can only afford to produce 375K units.

    Can you say 'hail Mary'?

  1. midtoad

    Fresh-Faced Recruit

    Joined: Jul 2007



    what a load of c***. What this really means is: Palm doesn't have enough money left to pay for its production run, so it's cutting back on its order. And if those don't sell quickly, there won't be a second order.

  1. Constable Odo

    Fresh-Faced Recruit

    Joined: Aug 2007


    No capital to spare...

    if that's what you consider cachet, well then go with it.
    Does limited mean exclusive? Only if Palm can't afford to build any more and those 375,000 are the only Pres that will ever be built. Guaranteed Palm is short on funds. No company would ever do this for a product that will supposedly have demand for millions of units. They might as well just go for broke. Oops. I guess they've already been there.

  1. luckyday

    Fresh-Faced Recruit

    Joined: Apr 2008



    You guys are so angry. Acting like a younger guy just stole your girlfriend.

  1. Salty

    Professional Poster

    Joined: Jul 2005



    Honestly I hope the Pre does well, I think it's a silly name, but any good competitor to Apple that isn't Microsoft is fine by me. I am not excited about the storm, but I think it'd be nice if two or three smart phones became major platforms and drove the prices into a good area for consumers.

  1. MeandmyMac

    Fresh-Faced Recruit

    Joined: Feb 2008


    What happens...

    when the Pre launches with it's 375,000 units and there is no "shortage"?! (where's my emoticon when I need one?) : )

  1. LouZer

    Fresh-Faced Recruit

    Joined: Nov 2000



    Or that's how many they'll have available on launch day and rather push the launch date, they'll just start with this amount.

    Seems to be the same sales strategy with game consoles. And apple did the same with both iphone releases.

  1. Jonathan-Tanya

    Fresh-Faced Recruit

    Joined: Oct 2004


    how is that

    how is it cache to not sell out of 375,000 phones?

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