In Soviet Union, you get Palm Pre
  • 87 Comments
by John Biggs on June 29, 2009

scaledphoto

If you were reading a major paper this weekend, you’d notice a striking ad. There’s the Palm Pre resting against an eaten Apple with the words:

The Palm Pre does things the iPhone can’t. Run multiple applications at the same time with real-time updates and even save $1200 over two years. It’s the perfect time to join the Now Network, America’s most trusted 3G network, bringing you the first and only 4G network from a national carrier.

The real call to action was to iPhone users with lapsed contracts – presumably iPhone users who bought the original iPhone two years ago and never upgraded to the 3G – a cohort that I suspect consists of perhaps five Palm engineers and maybe our tech-savvy grandparents. It’s a small number, friends. A small number.

Their claim – that people will switch when they’re out of contract – is ludicrous. It appeals to a fringe of users who, like Soviet defectors, hated Coca Cola and capitalism so much they they flew over to Central Europe and turned themselves in as American defectors. How many were there? A few hundred, at least, but life under that regime was probably much harder and less appealing than life with Mickeys Mouse and Mantle.

I’ll agree that the Palm is compelling – for current Sprint customers locked into the service due to geographic issues or coverage problems. More power to those folks. Considering the dearth of smartphones worth a damn on Sprint, they deserve a nice upgrade. But for current AT&T customers to flock in droves is an exercise in magical thinking.

“Your iPhone contract is up. Perfect Timing.” Mmmhmmm. It’s perfect timing for those who randomly purchased an iPhone and then put it in a drawer for two years, convinced it was stealing their precious bodily fluids.

Reuters found that 90,000 to 100,000 units were sold with the expectation that 500,000 were made at launch. Thirty-four percent – 34,000 on the high end – of those went to new customers. The 3GS sold 1,000,000 last weekend. There is clearly little, if any, defection going on here.

Is this the best you can do, Palm?

Comments rss icon

  • Are you kidding?

    iPhone was worldwide. check the American numbers (the first iPhone sold 150,000 in the first weekend).

    There is still a waiting list of over 100 people at my best buy and 70 people at my Sprint Store (I live in Saint Louis so its not the smallest city).

    Not to mention I have several friends with the original iPhone who’s contracts are ending between now and October. People in the real world don’t go and buy a new phone every six months – unlike you tech geeks.

    • I haven’t seen a 1st gen iPhone in the wild in months.

      • I’m a developer, and I use one! Oddly perhaps, I didn’t find the upgrade compelling. I will be upgrading to the “S” however, and currently run the 3.0 OS just fine thanks.

        I just saw another 2G yesterday. They are often sheathed, as is mine, with little way to tell the difference. My rationale is also that we can test on an older device.

        Is AT&T that much better with the 3G?

        • >Is AT&T that much better with the 3G?

          yes.

        • Yes, I switched from 2G to 3GS and the difference is absolutely huge. I live in the Bay Area and for once, I am seeing very nice speeds on a phone’s data connection. I have a second phone, Blackberry Storm on Verizon, and it stands zero chance to iPhone 3GS in terms of speed and usability.

        • My son has a 3G and I beg to differ… I do anticipate upgrading to the 3GS though…

        • >Is AT&T that much better with the 3G?

          No, but here’s why: I still have a 2g, hacked for t-mobile. I use their 5.99 WAP gateway for web and mail when I am not near wifi. And I use it for business. Sure it is slow, but guess what? In reality, after nearly 2 years, I rarely if ever need 3g speed.

          And the kicker? My bill is $61/month for unlimited minutes, 400 messages, and WAP. The closest ATT plan is $145/mo, and $84/mo diff, or $1008/year.

          For $1008 a year, if I REALLY need 3g speeds, I can go to the closest coffee shop and buy the place a round and *still* save money.

      • Also a developer and I just retired my 1st gen iphone and got the 3G(S)

      • I still have a 1st gen phone. althought it seems like most people who still do have had it replaced a few times, once right as the 3G came out.

        I wonder how many 1st gens are out there that are original and have never been replaced by apple or lost.

        • My wife has an original and has never had any issues with it nor lost it. She is happy with it so we wont be renewing her contract or getting her the new one.

      • It is juat an AD get over it!!! Apple fanboys

      • Of the people I know who bought 2G iPhones, none has upgraded to the 3G. Most are still using their 2G, some have switched to the BB Curve, and a few (myself included) have Palm Pres.

        The only people I know who have 3G iPhones were people who held off buying until the 3G came out.

        My experience may or may not be representative of the general population, but I can definitely say that if John Biggs hasn’t seen a 2G in months he either doesn’t get out much, or he just didn’t notice. A lot of people keep their iPhones in cases, and if you can’t see the naked rear of the phone, it’s hard to tell the difference.

      • Really Mike? You’re joking right? I see 1st gen iphones every day, many of my coworkers still have the 1st gen iphone, as do my friends. Yes, a lot of them were waiting for the 3GS to upgrade, but some are still perfectly content, and I don’t blame them since the build quality of the original iphone is much higher then the current ones, but for me I need all the new features. ;)

      • >> “iPhone users with lapsed contracts – presumably iPhone users who bought the original iPhone two years ago and never upgraded to the 3G – a cohort that I suspect consists of perhaps five Palm engineers and maybe our tech-savvy grandparents. It’s a small number, friends. A small number.”

        I call BS on that. Even though the plural of anecdote is not data, I still see *many* original iPhones around ; every day.
        And at Apple’s WWDC conference, for example, again, *many* original iPhones, from attendees as well as Apple engineers. Probably especially from Apple engineers.

        I have an original iPhone and have no immediate plans to change it. I’m not disputing that the iPhone 3G was better and the 3GS is even better, but that doesn’t mean that everybody always needs to switch to the latest best thing immediately. It’s wasteful, and life is possible without the latest features.

        Letting desire linger for a bit feels good too. Try it sometimes, instead of instant gratification. (You’ll help the planet too)

        • Hugo, I second your statement regarding wasteful upgrading of phones. We all know the e-waste is the worst kind, yet everyone insist on upgrading the second a new update comes out. I also know what you mean about letting desire linger for a while. Not only does it build anticipation, but you also are less likely to feel buyers remorse when you wait. Not to mention there is always a better model right around the corner. I say hold off as long as you can bare it.

      • In Chicago, people still have them in significant numbers.

    • I had the 1st Gen iPhone and never upgraded to the 3G either. (Although I did finally upgrade to the 3GS) I also have several friends who still have the 1st Gen iPhone as well.

      I don’t think many people will switch to the Palm Pre but to say there aren’t many 1st gen iPhones in the wild seems largely off base.

    • iPhone 1st gen was not worldwide. It was only ATT in the US. All estimates I saw were about 500K.

      http://money.cnn.com/2007/07/02/technology/iphone_sales/

      Think about the people that would have bought an iPhone within the first couple months of the original launch. I’d imagine there were quite a few Apple enthusiasts and tech early adopters. Both of those groups would most likely have upgraded to a 3G and/or 3G S now. Although I think the Pre is a compelling phone, I’m just not sure it’ll pull existing iPhone users from the iPhone.

  • in soviet russia, plam pre-uses you

  • Part of the problem with the Pre is Sprint isn’t a very good network. It should do pretty well once it gets to verizon, assuming they don’t cripple it too much.

    • @Ryan Where do you live? Sprint is one of the best covered and affordably priced networks out there. AT&T, Verizon and T-mobile don’t even true full coverage in Manhattan. All 3 have dead spots in different parts of the city.

    • Wow. Every Carrier has network problems in some areas. So just because Sprint is bad where you are at does not mean it is bad everywhere. Sprint is the best carrier in my area. Also I have heard of AT&T not good in some other parts.

    • I’m in Rhode Island and It’s been my experience that Verizon and At&t have similar coverage here while Sprint’s is spotty at best. Years ago At&t had terrible service out here but it’s gotten much better in the last few years.

      Obviously everywhere is different but in my experience Sprint’s coverage isn’t nearly as good as Verizon or At&t.

    • Sprint has a very strong network in manhattan, sometimes making calls available even in the subway where at&t could never do that, and their third generation mobile internet network works better and faster……………regardless, I still switched to at&t just to get the coolest cellphone on earth. The pre found a good home at sprint, by the time sprint doesn’t sell it exclusively anymore, Verizon WILL find the way to criple the pre, just like they did with the RIM bb storm, a smartphone that HAD a good potential with its original software.

    • In California, Sprint has had a reputation (for the past 10 years) as having horrible coverage. I’m not sure if that’s changed, but I haven’t heard otherwise.

      AT&T is decent. I usually have good coverage. The big limitation I’ve run into is using my phone while driving on the freeway: There are some open spots.

      Verizon probably has the best rep. Alas, no iPhone. I think many ppl are waiting for Verizon + iPhone.

  • In your bid to love apple perhaps some fair reporting would be good.
    http://www.wired.com/gadgetlab/2009/06/iphone-3gs-handsets-overheat-turn-brown/

    on a serious note, the Iphone isnt as cool as you americans make out. here in the uk anyway or in switzerland only people trying to be cool but arent in touch with the now culture have iphones ( think the kid at school noone talked to or over 40’s trying to stay cool like the kids).

    Here HTC, Blackberry have more cool than Iphones

  • I’ve been using a first gen iphone since June 24th, 2007. Havent had any problem. Edge still sucks, but I’m proud that its held up so well. Without a cover no less. Can’t decide between the 3GS and the Palm Pre so frankly the advertisement was very timely for me.

  • Get out of your echo chamber. I’ve met at least 10 people in the last 3 months that still had the original iPhone. I have no idea if they’d switch a Palm Pre, but if cost-savings was an issue, I’m sure it’s crossed their mind.

  • I still have the first gen iphone. It works fine, except for the cracked screen when I dropped it on concrete (not advised). I will mostly likely upgrade, though I am not happy that the monthly cost goes up $20/month. Maybe I’ll switch to something that costs less each month…

  • What’s with the Random Capitalization in your quote of the advertisement?

    While I’m at it, could we get an autolevel on the image? It’s a bit murky.

  • The analogy of iphone to pre switchers to those repressed under the soviet block is far more ludicrous and ridiculous than the suggestion that some iphone users might want to switch to the pre.

    A friend of mine just switched from the blackberry to an iphone 3GS and has been bemoaning all weekend to me that the iphone sucks: bad battery life with the 3G network, no physical keyboard (so slow typing), and no messaging app that runs in the background.

  • iPhone $2500 a year for two years. Yeah, the iPhone is your friend…
    Police video of Michael Jackson’s last crap:
    http://www.youtube.com/watch?v=OVjJ5wsVSLM

  • This was the dumbest and biased article I’ve ever seen by far.

    Do you even get paid to write this kind of article?

    It’s like comparing how many light bulbs GE sell compared to the number of a private-label light bulbs sold.

  • “Is this the best you can do, Palm?”

    John, I think you’re writing off this approach way too early.

    Palm picks a very small market of people where timing against their contracts are key. If these users haven’t already upgraded because almighty Apple said they should, they’re obviously a good target to evaluate for switching. If they find they *can* convert those users, they can learn how to go after others at a later time. If they *cant* convert those users, they know they have more work to do.

    Your comments imply that Palm’s strategy should be one where they go after each and every iPhone user to trade in their phones for a Palm Pre.

    Do you seriously believe that would be a good strategy? Do you seriously believe that Palm has to go after every iPhone user to be successful?

    If you have a better idea for how Palm is to go about marketing their new product, why don’t you write about it?

  • We’re in the middle of a recession.

    From my experiences, people are being more careful about what they buy and, as a result, when their contract comes up are downgrading to the tier below and picking up the phones that come free in order to save money.

    As such, don’t discount the fact that people will put up with something slightly inferior if it saves them $1200 over two years.

    That is a very big draw.

  • Sprint’s monthly plan is the best of all the carriers. You don’t get ripped off by ATT’s txt messaging add-on. With Sprint, it’s UNLIMITED and INCLUDED with the plan. GPS navigation is also INCLUDED with the plan. And Sprint’s plan is cheaper than ATT to begin with. I love the IPhone but I hate ATT and their outrageous pricing structure.

    Think about it. if you pay for “unlimited data” with att, why does that data not include text message? which is in essence 150 characters of text?

  • A friend upgraded to the Pre. And retuned it a few days later. (No spell check, and no password lock?)

    He said somebody else was returning theirs too…I wonder what percent of Pre’s vs percent of iPhones get returned?

    • Pre_1_Kicks_iPhone - June 29th, 2009 at 2:28 pm GMT+5

      Its got password lock — your friend needs spectacles or a brain. Either way you need new friends. And wow — making a $1200 decision on a spell checker — that is classic.

      Pre is like the Wii — actually fun and usable. iPhone is like PS3 (what? what was that?).

  • “Is this the best you can do, Palm?”

    Hey, John – you’re picking on the wrong messenger here. That’s Sprint’s call to action, Sprint’s copy. It’s Sprint’s ad.

    So the question should be:

    “Is this the best you can do, Sprint?”

  • I’ve carried an original iPhone since a couple weeks after it launched. Edge has been adequate for me, GPS has worked better than you’d think, and I’ve watched others with 3G phones, particularly earlier on, struggle to get connections and fall back to Edge.

    I carried a Pre with my phone number forwarded to it for 4 days last week. I really liked it, but it was immature compared to iphone (no shock there). The card paradigm really works well.

    I’m also in the early developer program at Pre. It’s so easy to develop for Pre, that I think it’s posed for an amateur app ecosystem to grow like crazy, like original Palm apps (plus some good professional apps).

    I just ordered a Nokia N97 (released this month).

  • I know, I know, you’re just a blog… but please, at least try to be a little objective.

  • There is a drawer full of 1st gen phones at my house. And they get used now and again when something gets broken.

  • From my viewpoint, your article is way off base. Maybe it’s a Bay Area thing. No one I knew up here in Seattle had upgraded to the 3G. We were all out of contract this summer – but of course, we all upgraded to the 3GS, not the Pre.

  • I own and use a 1st gen iPhone. I couldn’t justify the cost to upgrade when the 3g came out. Too many gadgets, not enough money!

    I have to admit, the Pre is very tempting to me. I need to get my hands on one to really know for sure, but it appears to address several of my major gripes with the iphone (my biggest complaint with the iPhone is how it handles notifications and it appears that the Pre does a great job at that).

    For now I am going to hold off on any new purchase and see how WebOS matures. I can live with the 1st gen iPhone!

  • Online Media Expert - June 29th, 2009 at 1:08 pm GMT+5

    I just a bought a Pre and couldn’t be happier. It’s like a blackberry and an iphone had sex then had a baby, the Pre.

    Having a multiple apps open and running at once is CRUCIAL and that one feature alone makes it superior to an iphone, sorry fanboys :(

    It is lighter and feels better in your pocket compared to an iphone

    I also prefer to type on a keyboard as opposed to a screen, i know some people who are too blinded by apple will tell you they don’t care but i digress

    Unless having access to thousands of pointless apps is important to you, the Pre is better. I personally could care less about making my phone a flute or shaking my phone to determine what i will eat for lunch

  • This actually isn’t a bad tactic on Palm’s part.

    They aren’t limiting themselves to a small pool of iPhone users at all – they’re opening themselves up to ALL cell phone users whose contracts are soon coming to an end.

    More specifically, to people who have not upgraded to a smartphone – of which there is a very large pool.

    Anyone not using a smartphone whose contract is soon to be up may be considering upgrading. With iPhone being high on the popularity list, it makes sense for other smartphone providers to differentiate themselves from the iPhone in an attempt to get at this pool of potential users.

    Taking the economic route is pretty smart – and pretty obvious given the economy right now.

    I say good on Palm.

  • The Palm Pre is for the Soviet Union……..righhhhht OK.

    You guys had better be serious about the freaking Crunchpad that’s all I can say!
    Soviet Union…….*rolls eyes*

  • I paid $130 to cancel my iPhone contract and then switched to the Palm Pre.

    I unlocked my 3G using ultrasn0w and gave it to my mom for T-Mobile.

    Suck on that AT&T… they had ridiculously overpriced plans! I paid $85 for 1500 texts and 450!?! MINUTES!

    I love my Palm Pre way more than my iPhone…. still no regrets!

  • Pre_1_Kicks_iPhone - June 29th, 2009 at 2:25 pm GMT+5

    Bought a Pre — love it. iPhone rakes you over the coals on the cost of hte phone, crappy ATT service, and exorbitant fees for service. (Sprint $99/everything month means EVERYTHING including navigation, text messaging, voice, and data).

    Imagine Pre 1.0 has sold so many devices despite iPhone being in the market for so long.

    Oh and there were tons of people buying pres. And Palm will do justice to open source and community based applications. Rather than the “I am steve jobs here my roar and only my apps are good — until I need another liver and need to jump ahead in line and then I will raise your fees some more)”.

    Oh and wow i can actually change my battery myself on the pre. wow. what a concept — no “warranties” requires for a battery change. A keyboard — that is SO human.

    • Huh !!! calling Pre a open source champion is laughable.. Pre as a platform is closed as Apple. if you really want a open source platform then you should try Android. RIM.. Apple.. Pre are closed source platform period.

      Ben

      • smartphone-programmer - July 3rd, 2009 at 6:05 pm GMT+5

        You’re a joke. You obviously don’t have a Palm Pre and or research what this baby can do. The SDK hasn’t even been released and yet programmers have already released info on how to access the Pre’s Linux operating system at root level.

        There are numerous developers arleady tinkering with the Palm Pre building homebrew apps including making the Palm Pre into a mini Web Server. What does open source platform mean to you?

  • Soviet Union doesn’t exist any more!

    • but americans don’t think so.. -_-

      btw.. I live in Russia and in fact iPhone isn’t popular here. our mobile leader is Nokia because even cool touch models like 5800 cost 2x cheaper than Apple’s phone. and there is no way to buy apps from AppStore. so Palm Pre has a very good chances if they come with right marketing.

  • Nice add. That is so good that I bought a sim-free iPhone with no contract to any carrier

  • This isn’t a Palm ad… it’s Sprint’s doing.

  • FU (Francis Ubermon) - June 29th, 2009 at 3:01 pm GMT+5

    Look here boys and girls. Synergestic captilism at it’s best.

    These devices are meant to soak up your cash and nothing more.

    The Iphone is both Apple’s and AT&T’s cash cow, and is nothing but antiquited hardware that ties itself to central software reposity bloated with useless applications.

    The Pre, if compatible with older PALM apps can be more usefull, but at the end of the day, it’s no better then the Iphone.

    - Nor is an Android phone.

    Winmobile is the king of usability

  • If the savings really was that great, Palm should just encourage existing iPhone customers to terminate their contract. A $200 or so ETF is nothing compared to a $600/year savings.

  • I don’t understand why by subscribing to TechCrunch I’m forced to sit through CrunchGear fanboyism.

  • John Briggs, must be an Apple Fanboy, and own Apple stock. I think it’s great to see some competition, John would rather see it fail… I would love to know your source, 500,000 Pre’s made for launch? There were never any numbers posted on how many Pre’s were available for launch. Does sold out, waiting lists mean anything? Sure Apple sold 1,000,000 IPhones, out of 1,000,000 how many of those were new contracts and how many in the US? If you are going to post an article, why don’t you post actual numbers. Ohh wait!!! That is because you are too stupid to. It is a lot easier to post 1,000,000 and say it beat the Pre. Then I love the use of filler, Soviet defectors, Coca Cola, and Mickey Mouse. There is absolutely no substance in your article.

    The ad says save $1200 over two years, where is the comparison in plans for AT&T and Sprint? Ohh wait, once again your are too stupid to post that. Last time I checked $1200 is a good sum of money, and would make me think about porting over. In addition I am very happy with Sprint, and their service. I pay $69 a month for 450 anytime minutes, unlimited nights and weekends starting at 7pm, unlimited Data, unlimited Texts with MMS, GPS, then I get a 27% company discount. Why would I want to pay $1200 more over two years? Why can’t you write something that would make me think otherwise. The article should be headlined “John Briggs: Is This the Best You Can Do?” If I used AT&T I am sure I would have had an IPhone by now. I have had the Palm Pre since launch, and it is a fine product. Sure the Palm Pre will not be your beloved IPhone. I am thankful that there is now a product out that can compete on, and above the same level of the IPhone. I love the multitasking, notifications, small form factor, and Synergy, and my “Lower Bill”. Do yourself a favor, do not bash a product that you have never used.

  • Since the bias in your post is painfully obvious, I’m going to be slightly rude.

    Do you have any quantitative evidence backing up your claim that:

    “The real call to action was to iPhone users with lapsed contracts…” – “It’s a small number, friends. A small number.”

    or are you just speculating?

  • Dear John,

    How are you able to use your wonderfully sexy and amazingly perfect iPhone with all the protein stains obstructing your view and making the screen bumpy?

  • I absolutely love my new Palm Pre . . . don’t knock it till you’ve tried it!

  • I have an unlocked 2G IPhone and love it, but definitely wouldn’t mind competition. However, the Palm Pre bashing on this blog smacks of extreme bias, hope that Apple doesn’t pay for that sort of thing.

  • Not as small as you might think. I work for an Apple Specialist (Reseller Program) and we get quite a few people coming in for iPhone accessories who still own the 1G iPhone.

  • Everything John Biggs has writen about the Palm Pre has been negative thus far. He’s lost any credibility he ever had before the Pre’s launch.

    Move on

  • iPhone in AT&T USA=FAIL
    Sprint has WAY better coverage, 3G and all.
    Get over it Apple fanboys.
    I hope Palm does very well, if not for Competition, at least to teach a lesson to all those Stupid people that won’t believe in them or in Sprint.
    Did you Stupid people know that Sprint Plans are better and cheaper?
    Oh well, keep been Stupid and Ignorant, I’m done here.

  • for an article bashing sprint and the palm pre your site sure has a bunch of sprint ads on it. I count at least three.

  • Hey John,

    Last time I checked, the Sprint network runs rings around the POS that AT&T calls a network. The iPhone makes a very trendy boat anchor when it can’t hold a call more than 30 sec. It also has some lovely applications that don’t work on the Pre. Fart sounds, faux beer drinking…very useful tool! But hey, great post!

  • Fun watching the chaos, low-bandwidth edition - July 1st, 2009 at 6:26 am GMT+5

    In Soviet Union, think as you like, do as we instruct you.

  • smartphone-programmer - July 3rd, 2009 at 6:24 pm GMT+5

    Let’s all just calm down and face reality. Palm Pre was initially underestimated to have sold around 50,000 to 150,000 units. New reports suggest that Palm has sold over 400,000 units and will continue to manufacture 15,000 per day. That’s about half a million Palm Pre’s sold each month!

    Next week the GSM (SIM Card version) Palm Pre will be released and sold for 1st time in the UK and could generate another million Palm Pre’s sold. When Verizon and AT&T begin to sell the Palm Pre around the end of the 4th quarter of this year, Palm Pre could reaching 10 million units and more.

    Despite Sprints low-blow ad, you have to admit they’re all true. Sprint’s package offers better options and is cheaper than AT&T. While the Palm Pre’s multitasking capability is superior to the iPhone which makes it so popular around the world. That’s why everyone is going out to buy the Palm Pre.

    Because of that, you’ll all just need to get used to it because smartphone programmers aren’t gonna sit idle and let their iPhone apps rot among thousands of other apps. Palm Pre’s App Store is gonna explode with thousands of apps too so go with the flow.

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