Tuesday, May 19, 2009

Palm (PALM) to Launch Pre Jun 6th at Apple (AAPL) iPhone Pricing: $200

I am really... really... really kicking myself over not chasing this Palm (PALM) anytime in the past 3 months. This stock was under $1.50 in December, as low as $3 in early January - until Palm Pre showed up at a trade show and knocked the socks off people. [Jan 9: Obama Sighted with Palm Pre in His Hand Yesterday] It promptly jumped to $6, and has doubled AGAIN. I once again made the 'mistake' of looking at valuation and saying "too expensive" all along the way. In return I have ether instead of some excellent gains. Now, I will be curious if this rallies until June 6th and then sells off (buy the rumor, sell the news) but quite clearly one of the most excellent charts in existence today- buy every drop to the blue line for 2 months straight... simple.

I'll be very interested to see how Palm flushes out; the keyboard function will differentiate v Apple but half a generation (especially the younger folk) does not even know that Palm was the pioneer in this space.

Via Reuters
  • Sprint Nextel Corp (NYSE:S - News) said it will sell Palm Inc's (NasdaqGS:PALM - News) long-awaited Pre smartphone starting on June 6 for $199.99 with a two-year service agreement, in line with Apple Inc's (NasdaqGS:AAPL - News) iPhone price.
  • Shares in Palm fell 5 percent as some investors were disappointed that the price would match rather than beat iPhone's price and Sprint's chief executive said on Tuesday he expects Pre shortages around the launch.
  • Piper Jaffray analyst Michael Walkley said it was typical that a new high-profile phone would be in short supply around the launch time. But he some Palm investors were likely taking profits after shares rallied from $3.30 in January to more than $12 in anticipation of the phone. "Maybe there's a little disappointment about the launch price and the fact they're indicating that they'll have limited supply," said Walkley.
  • However some analysts worry that the Pre could be upstaged by a new cheaper version of iPhone, which is expected to be announced by Apple as early as June 8.
  • While Pre 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. "Its going to sell principally into the base, to existing Palm owners and existing Sprint subscribers," Harris said, without giving a specific sales target.
Via Bloomberg
  • “The Pre is not well-known to the average consumer relative to BlackBerry and Apple, which means Palm has a lot of work to do to get that brand out there,” said the Boston-based analyst, who rates the stock “neutral.” RIM’s BlackBerry Curve model was the No. 1 U.S. device last quarter, followed by Apple’s iPhone 3G.
  • Like the iPhone, the Pre’s screen covers the device to make watching video easier. It also features a slide-out Qwerty keyboard, which the iPhone and BlackBerry Storm lack.
  • Palm needs the Pre to be successful to revive sales, which slumped as consumers opted for rivals’ devices. Analysts say that will mean striking long-term deals in the U.S. with carriers besides Sprint, which trails Verizon Wireless and AT&T in customers. Palm won’t say when its deal with Overland Park, Kansas-based Sprint expires.
[Apr 1, 2009: Bloomberg - Palm May Not Match Apple iPhone Debut as Economy Flags]

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