The Palm Pre May Or May Not Be Meeting Expectations
Neither Sprint (NYSE: S) nor Palm (NSDQ: PALM) are willing to say how many Palm Pres they have been able to sell, but that doesn’t stop people from speculating.
SEE ALSO: Analyst: Palm Pre Has Sold 300,000 Units
A report released today says the Palm Pre is failing to meet expectations and sales are falling, which is in stark contrast to a report last week that said the Pre was holding up in the face of the new iPhone 3GS.
So which is it? The two theories are not even close. Charter (NSDQ: CHTR) Equity Research analyst Edward Snyder said last week that Palm had sold 300,000 Pre phones and that it will ship one million phones within three months. But today, wireless consultant iGR, says there is no widespread shortage of devices and in fact, sales are falling, reports TechCrunch.
iGR got their figures by calling more than 50 Sprint stores and asking them a series of questions. While some of them refused to participate, it did get responses from some of them. It said a majority of stores had plenty of Pres available, compared to 8 percent of stores last week, which had sold-out. In addition, it said 40 percent of stores that answered questions reported fewer than 10 phone sales this week; 33 percent said they sold between 10 to 20 units; and 16 percent reported 20 to 30. In comparison, Apple (NSDQ: AAPL) sold 1 million iPhone 3GS’s during its first weekend, and has reported shortages in its stores and in AT&T (NYSE: T) stores. Sprint would only confirm that it saw record sales during its first weekend of Pre sales.
Regardless of how many phones have been sold, sales are far off from the extravagant remarks made by Palm investor Roger McNamee in March. In particular, he expected the Pre to win over former iPhone users. He said in an interview with Bloomberg: “You know the beautiful thing: June 29, 2009, is the two-year anniversary of the first shipment of the iPhone…Not one of those people will still be using an iPhone a month later….Think about it—If you bought the first iPhone, you bought it because you wanted the coolest product on the market…Your two-year contract has just expired. Look around. Tell me what they’re going to buy.”
McNamee still has 23 days for that dream to come true.

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