OMG! Apple just killed Palm, those…..
As the various announcements at today’s keynote at Apple’s WWDC are analyzed, considered, and gushed over, there was one announcement that has huge ramifications for another company: Palm.
The touchscreen Palm Pre mobile went on sale at the weekend with moderate sales figures, but that was before Apple changed the game: the current 3G iPhone is now available for $99.
The apples and apples comparison (no pun intended) isn’t perfect, but the memory and price points are: $99 upfront for an 8gb 3G iPhone, or $299 ($199 after a $100 rebate) for a 8gb Palm Pre. Even ignoring the recession, and the huge advantage Apple has with applications (50,000 iPhone apps vs 18 for the Pre), the iPhone wins hands down on cost. That could mean that any hype around the Palm Pre could be near worthless when it comes to a final buying decision. Palm could respond with a price cut, but given the phone has only just gone on sale, that’s highly unlikely.
Of most mobile companies, Palm has long been the company most likely to fold. The Pre, according to analysts was Palm’s last serious play to turn the company around; if it fails, Palm as a company could fail as well. With Apple now offering a $99 iPhone, the chances of the Pre being a flop at least double…but maybe even more so. The new iPhones, which offer superior features to the Pre at similar price points don’t go on sale until July, so mobile phone buyers might sit back and wait to consider a new iPhone 3G-S, deferring buying decisions in the short term.
The market would appear to be concerned as well: Palm stock (NASDAQ:PALM) dropped 6.46% today, and a further 0.49% in after hours trading to close at $12.10.
(img: Engaget)
