Even though the Palm Pre smartphone received a lot of hype both prior to and during its recent U.S. launch, the smartphone isn't selling well enough to ensure further longevity for Palm or Sprint.
The Pre is helping Sprint keep some subscribers with the company, but the phone has been unable to draw many users away from Verizon Wireless and AT&T, recent analyst reports indicate. In a report issued today, it was revealed most consumers who purchased a Pre are already Sprint subscribers, though subscribers on other carriers haven't been swayed to abandon other providers.
Sprint has lost 4 million subscribers in the past year, with thousands continuing to leave each week. They are heading towards Verizon, AT&T and T-Mobile, as each company offers better phones. It was obviously crucial for Pre to launch with good sales numbers, which would have helped convince consumers to follow the two companies more closely.
I mentioned earlier that the Pre seemed like an interesting device, but it likely wouldn't be worth switching from Verizon Wireless over to Sprint.
The Pre now faces increased pressure from the new Apple iPhone 3G S updated iPhone, along with the BlackBerry Tour smartphone that is scheduled to be released later this summer. Nokia also is working on a smartphone for the U.S. market, only further hurting Palm's chances of having good sales numbers.
Palm's mystique, back when the company had its legendary Pilot devices, has been long gone, with the company facing an extremely uncertain future that includes talks of acquisitions and buyouts.
