Palm Pre vs. iPhone
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By Sinead Carew and Jessica WohlNEW YORK/CHICAGO (Reuters) - Small crowds gathered on Saturday for the official launch of Pre, the smartphone seen as Palm Inc's best chance to claw back market share from Apple Inc's iPhone and Research In Motion Ltd's Blackberry.
The new high-end phone, considered a pivotal product for both Palm and Sprint Nextel, has been greeted by rave reviews.
Lines were far shorter than those that snaked around Apple stores for its first hugely popular iPhone two years ago, but many consumers said they were eager for the new product.
"I wanted their iPhone killer. I've been anticipating this for a while," said Peter Lewis, who bought phones for himself and his wife at a Sprint store in Chicago, where some 45 people were in line when the doors opened at 8 a.m.
"This is my birthday present to myself," said Wilma Rivera, 36, a heating technician who brought her 17-month-old daughter to Sprint's flagship store in Manhattan.
Rivera, a long-time Palm user, said while she had been tempted by iPhone, sold only by AT&T Inc in the United States, she "never wanted to leave Sprint."
Sprint, the No. 3 U.S. mobile telephone service, is depending on Pre to help stem defections and win back subscribers from rivals such as AT&T and Verizon Wireless, a venture of Verizon Communications and Vodafone Group Plc.
Sprint spokeswoman Jennifer Walsh Keifer said late on Saturday that Sprint had sold out of Pre phones at a number of different locations around the country and that the company was doing its best to restock stores.
Pre is hitting the shelves just before Apple is widely expected to announce a new iPhone on June 8.
PRICE AND KEYBOARD
The Pre costs $199.99, after a $100 rebate, for customers who sign a two-year service contract. It is priced in line with the $199 smaller-capacity iPhone. Pre's monthly service fees start at $69.99, including unlimited text messaging, lower than the cost of iPhone service plans with similar features.
"It's always nice to see a bunch of people waiting for a product you worked on," Palm Executive Chairman Jon Rubinstein, a former Apple executive who helped create the iPod, said at a Sprint store in San Francisco's financial district, where more than a dozen people lined up to purchase a Pre.
He said the opportunity for smartphones was big enough to sustain a market for three to five successful vendors.
"For us, the opportunity is not to take customers away from RIM or Apple," Rubinstein said, but rather to entice users of lower-level cell phones to upgrade to a more powerful smartphone.
Some who waited in line on Saturday were clearly more technologically savvy. Continued...
Source: Reuters
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