Palm's Pre Debuts as iPhone Alternative

According to report by Blooberg, Palm Inc.’s Pre, the device touted as the biggest competitor yet to Apple Inc.’s iPhone, goes on sale today through Sprint Nextel Corp., with investors counting on the handset to win customers and reverse sales declines.

Customers lined up as early as 5 a.m. at Sprint’s flagship Manhattan store while Pre fans in Boston and Cherry Hill, New Jersey got in line yesterday. Sprint, which has trained staff for weeks and held promotional events with the likes of Jerry Seinfeld, may sell almost 200,000 phones this weekend, some analysts estimate.

The Pre, selling for $199 with a two-year contract and mail-in rebate, has an operating system that combines calendars, contacts and messages from different accounts. It synchronizes with Apple’s iTunes music store and has a screen that lets users zoom in and flip through applications without closing them. Customers can pay $70 more for the wireless Touchstone charger.

Palm aims to win back customers for smart phones, a market it helped create, after devices from Apple and Research In Motion Ltd. prevailed with newer features and operating systems. Palm hired retired iPod chief Jon Rubinstein in 2007 to develop the Pre. Palm’s shares have quadrupled this year and Sprint’s have almost tripled in anticipation of its release, reported Bloomberg.

Sprint and retailer Best Buy Co. said there may initially be Pre shortages while manufacturing ramps up to meet demand.

Pre buyers need to sign up for Sprint’s Simply Everything plans, which include unlimited data and messaging and start at $69.99 a month. AT&T Inc. charges iPhone users the same amount without messaging, according to the companies’ Web sites. The Pre is also available at RadioShack Corp. and some Wal-Mart Stores Inc. locations, said Bloomberg.

(June 6, 2009)

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