Pre shortage anticipated

Shortly after Sprint announced the launch date for the Palm Pre, the carrier's chief executive, Dan Hesse, admitted he anticipates shortages after the handset is released, according to PC Magazine. The device will match Apple's $200 price-point for the iPhone, after a $100 rebate, with initial distribution planned for Sprint stores, Best Buy, Radio Shack and Walmart.

"We don't intend to advertise it heavily early on because we think we are going to have shortages for a while," Hesse said. "We won't be able to keep up with demand for the device in the early period of time."

Michael Walkley, a Piper Jaffray analyst, suggests the supply acknowledgment could have contributed to a slight drop for the carrier's stock on Tuesday. "Maybe there's a little disappointment about the launch price and the fact they're indicating that they'll have limited supply," he said.

Other analysts worry the device could be overshadowed by a new iPhone. "It would've been nicer if the device was out in the market for a longer period before any potential iPhone," said Lawrence Harris of CL King Associates. The Pre potentially faces even tougher competition if Apple's upcoming device falls below the $200 mark.

By Electronista Staff

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sprint, Palm, mobile phones, Pre