Best Buy to have poor Pre stock until July
updated 09:40 am EDT, Fri May 22, 2009
Best Buy Pre Shortage
Best Buy's limited stock of Palm Pre devices has been discovered to be evidence of a much more pronounced shortage. An internal company launch guide obtained by BGR warns that Best Buy Mobile stores will have to manage the release in two phases. The company expects the first phase to be characterized by extremely limited supply until at least late July and that there will be "little or no replenishment" for the first few weeks.
In these conditions, stores will be banned from selling phones to employees and can only sell one Pre per customer. Only 300 of Best Buy's stores will be allowed to carry demo units, and waiting lists are expected once the initial supply runs out. It won't be until the second phase that many of these limits will be removed and enough devices ship in volume.
While it's not known how Radio Shack and Sprint will fare in comparison, the document supports beliefs that Palm will have an unintentionally low supply of its range-leading smartphone for launch and could face difficulties competing against the likely close release of the third-generation iPhone, which should be available in significantly healthier supply for its own debut.
just like many of us...
05/22, 10:39am reply
said... Palm is trying to spin this as 'creating buzz with an artificial shortage'.
In reality Palm is so strapped for cash they can't make enough units. It's likely their manufacturers aren't extending them much credit (demanding cash up front) for fear Palm will go belly-up, which makes things that much harder for Palm.
So they are hoping they sell enough Pre's to finance another round of manufacturing... and by the time those get in the stores, the new iPhone will be out and everyone will forget about the Pre.
Time to short Palm stock? I think so.
climacs
Fresh-Faced Recruit
Joined: Sep 2001
short PALM
05/22, 11:40am reply
PALM has moved below its 20 day MA and is showing a technical break down. May be a little late, as the easy profits are gone. A lot is riding on the Pre, that's for sure. Better off with puts than shorting it, I say.
There's no hard evidence that the shortage is due to a lack of cash. Their private shareholders have given them cash. We'll see if it is enough.
gor3don
Fresh-Faced Recruit
Joined: Nov 2005
I hear they're building
05/22, 12:25pm reply
Palm Pres by a dozen batch. The manufacturer has to make sure Palm can pay for each batch. Rumor or not, this does not sound exactly great for the Pre. They really needed to sell as many as they could before the next iPhone is announced. As it is, so many people will be holding off on buying a Pre until the iPhone is announced. Palm has a long road ahead of them to make the Pre a hit.
If it was just an artificial shortage, you'd think they'd at least have the decency to wait until it went on sale before claiming to run out of stock due to overwhelming demand. Hehe.
Constable Odo
Fresh-Faced Recruit
Joined: Aug 2007
It's the rebates, duh
05/22, 05:56pm reply
Best Buy is the only place that offers an instant rebate. Everywhere else involves an annoying mail in rebate that is likely to get denied even if you follow the instructions properly, which of course means more money for Palm. Hence it is in Palm's best interest to see that Best Buy gets the least stock.
bigmig
Fresh-Faced Recruit
Joined: Jan 2004