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Sprint CEO expects Pre shortage at launch

updated 08:25 pm EDT, Tue May 19, 2009

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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  1. stainboy

    Fresh-Faced Recruit

    Joined: Sep 2005


    here's how it goes:

    1. underproduce the device
      2. announce "we're so popular, we're all sold out!"
      3. get lots more publicity

  1. snork

    Fresh-Faced Recruit

    Joined: Feb 2008


    re: here's how it goes

    Yeah, I was thinking the same thing. I can't see how it'll be "sold out" since I don't know anybody that would be willing to switch to Sprint. It's a damn good looking phone, but I just don't see the same carrier switching potential as with the iPhone/AT&T.

    If it was still 2000-2002 and Palm was at the top of their game, this could be a very different story! The Palm name just doesn't carry the weight it used to.

  1. testudo

    Forum Regular

    Joined: Aug 2001


    Re: Here's how it goes...

    Hey, it worked great for Apple.

    Maybe they should take up that other Apple idea and make people stand in line outside the stores for phones, because, well, it makes it seem demand is really high, even though they have more than enough stock to sell.

  1. slapppy

    Fresh-Faced Recruit

    Joined: Mar 2008


    Guy is full of himself


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