Palm’s New Smartphone Goes on Sale on June 6

Palm’s New Smartphone Goes on Sale on June 6
Copyright By REUTERS
Published: May 19, 2009
http://www.nytimes.com/2009/05/20/technology/companies/20palm.html?th&emc=th


The hand-held device maker, Palm Inc., said Tuesday that it would begin selling its long-awaited smartphone, the Palm Pre, in the United States on June 6.

The Sprint Nextel Corporation, the telecommunications company, will be Pre’s exclusive carrier at least through the end of the year. Sprint said that Pre would cost $199.99 after a $100 mail-in rebate and would come with a two-year service agreement.

Pre is expected to help Sprint stem customer losses and is seen as Palm’s best hope to regain smartphone market share from the Apple iPhone and the BlackBerry from Research In Motion.

Sprint’s pricing matches the current version of iPhone sold by a bigger rival, AT&T, but some analysts expect Apple to announce a cheaper version of iPhone as early as June 8.

A CL King Associates analyst, Lawrence Harris, said that some investors might be disappointed that the phone was not priced below iPhone and that it would not be available sooner.

“It would’ve been nicer if the device was out in the market for a longer period before any potential iPhone,” Mr. Harris said.

While the device may stop existing customers of Sprint and Palm from switching to rival phones and service, it would be unlikely to lure away users of iPhone or BlackBerry, he said.

The Pre has touch-screen controls as well as a keyboard that slides out from under the phone. It will run on Sprint’s 3G network and features personal and professional calendars, e-mail and contact lists, the company said.