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Palm Pre Plus (MINUS) – What Went Wrong? The Party is Over
4/3/2010
By PJLouis
Tags: Palm pre, Palm Pre Plus. wireless, Sprint, Verizon, Apple, iPhone

Comments on article found at:  blogs.wsj.com/digits/2010/04/01/verizon-offers-deals-to-move-palm-phones/

 

I guess I should have realized something was amiss with the Palm Pre when the company failed to release a software development kit for months.


Despite my criticism of the iPhone in the past, the one thing I never criticized Apple for was its lack of applications or development kit. As soon as Apple released the first iPhone, it was not long before it released its software application development kit. These kits are what enabled thousands of application developers to thousands develop applications for the iPhone. Effectively, Apple opened up the iPhone for developers to participate in creating applications (that not even Apple could have thought of), which would vastly enhance the value of the iPhone.


This should have been the first signal to the entire investment community about what was to come with the Palm Pre. Months went by before Palm issued a kit. I recall when Palm said the kits would be forthcoming, however, I lost track of time and only realized months later that it took Palm months to issue the kit.


Palm obviously still does not get it. Palm is in the device selling business. Apple is in the content business. Think razors and razor blades. For years people thought Gillette was in the razor business, until one day the company noted that it was in the razor blade business. All of the cash being generated for Gillette was in the razor blades and not the razors. You buy one razor and hang onto it for years. However, you are frequently purchasing razor blades. Palm is selling razors and Apple is in the razor blade business. Guess who is going to make lots of money.


The iPhone is a device. The iPod is a device. Both generate tons of cash flow through the applications/content both devices deliver to customers who pay for them.


I had hoped Palm understood what business it was in. Looks like Palm is in the device business. I was so hopeful I even gave them credit for being bold. However, Palm reminded me what can happen in every product launch; one mistake and it can all be over.


I believe that it is too late for Palm to turn the Pre line around.


Television commercials give the viewer the impression the Palm is being targeted for women only. Why? Is this a form of market segmentation. Are the Palm Pre and Palm Pre Plus designed with women in mind? I do not even know what I just stated even means. Since when was a smarthandset gender specific. The marketing campaign was flawed. I was not happy with the marketing campaign from the beginning and months later, I still dislike it.


Here is what I think: The Party is Over

So, is the Palm saga a sign of things to come with Sprint as well?

gdt gdt
4/6/2010
No. Sprint is on a different path.
PJLouis PJLouis
4/6/2010
I have been recently corrected about my vfacts regarding the Palm development kit. The Palm development kit came out much sooner than what I have stated.

Of course this fact does nothing to improve the image of Palm. The correction of my "fact" simply puts Palm in an even worse light. Now it definitely looks like the Palm Pre is suffering from a lack of interest.
PJLouis PJLouis
4/11/2010