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Palm Pre demand has 'settled'

updated 11:55 am EDT, Thu July 2, 2009

JPMorgan on Pre Demand

Sales of the Palm Pre have cooled off to where supply is keeping up with demand, JPMorgan analyst Paul Coster said in an investment note today. He believes that about 270,000 Pres will have shipped in the first month of sales but that waiting lists have largely been reduced, revealing a near-ideal balance in what Palm ships each day. About 40,000 of the smartphones are estimated to now ship each week through Sprint directly, while more should also arrive through Best Buy and Radio Shack.

The equilibrium is good for both Palm and Sprint in preventing the shortages that have affected the Pre since its early June debut but hints that Palm may have already satiated pent-up early demand with constrained supplies. By contrast, Apple sold about 1 million iPhone 3GS units on launch and has seen shortages widen at O2 UK, Rogers and other initial carrier partners.

Coster nonetheless adds that demand is "constant" and should see about 230,000 shipped each month for July and August, reflecting the lack of built-up launch demand but continued interest. The figure would have Palm ship about 730,000 Pres in one quarter, or twice as many of the one model as the company sold of all its phones just one quarter earlier.



By Electronista Staff
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Comments

  1. jscotta

    Fresh-Faced Recruit

    Joined: Jun 2002

    +6

    hardware quality?

    I've been reading reports of poor hardware quality. Are they true?

  1. appleuzr

    Fresh-Faced Recruit

    Joined: Aug 2006

    +5

    played with it.

    The phone feels cheap.

  1. Terrin

    Fresh-Faced Recruit

    Joined: Jan 2006

    -1

    My experience

    I do not own one, but out of curiosity I went into a Sprint store to play with one. In comparison to an iPhone it does in fact feel cheap. Part of it is the quality of plastic seems low, and the weight doesn't make the device seem solid.

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