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Peek dropping prices to grow sales

updated 04:10 pm EDT, Fri July 17, 2009

Peek dropping prices

In light of handset makers and wireless providers entering its space in the market, Peek is forced to lower prices of its portable e-mail fetching devices in order to turn a profit and grow its sales. According to a Friday WSJ report (sub required), Peek is not planning on releasing devices with voice capabilities, despite smartphone prices dropping rapidly and taking away from the company's target market.

Even entry-level handsets offer access to the web, texting and e-mails, as well as voice calls, which no Peek device can match. At the same time, the majority of teenagers -- Peek's target demographics -- are found to talk to friends on cellphones and belong to social network sites.

Peek's VP of marketing, David Madden, says company sales nearly tripled after the recent price drop and introduction of a new device. Peek charges subscribers nearly $20 per month for unlimited e-mail and/or text service depending on which device is purchased, but company reps maintain its costs are much lower, as data is compressed. T-Mobile provides network access to Peek devices, which do not require a contract.

Peek currently offers two devices, including the original Peek now called the Peek Classic, and the recently-launched Peek Pronto that adds texting capabilities. The former's price was dropped over time to just $20 after launching at $100, while the Pronto is now priced at $60 instead of $80.



By Electronista Staff
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