Palm Pre reporting good sales
It is widely believed that the sales of Pre mobile by Palm Inc are well on track or may have even exceeded expectations. However analysts are skeptical because competition is just around the corner. The iPhone 3G S debuts on Friday and Research in Motion’s BlackBerry Tour is expected to follow soon.
Reports by some analysts state the number of units of Palm Pre that have been shipped at 50,000. However Pacific Crest Securities analyst James Faucette had this to say “We believe that between 90,000 units and 100,000 units were sold in the first week,” he said. “Given the high number of people still on waiting lists … the company appears to be on track to exceed our previous August quarter unit shipment estimate of 500,000.”
The successful launch of Palm Pre augurs well for Palm Inc as well as Sprint Nextel Corp. Now all eyes will be focused for Jun 25 when Jon Rubinstein, the recently appointed CEO, reports earnings of the company and may divulge the road map for the Palm Pre.
Pre shipment figures are very encouraging. The Shares of Palm have shot up to close at $14.57, which is a high since October 2007. The Big 3 in the new generation of Smartphones, the Palm Pre, 3G S by Apple and Research in Motion’s BlackBerry Tour will be the leaders in the migration of mobile phone users to Internet based applications and features.
As regards change of users from iPhone or BlackBerry,Tavis McCourt of Morgan Keegan has this to say, “We continue to believe the Pre will be wildly successful at Sprint, although we don’t believe it will cause meaningful iPhone or BlackBerry defections due to its lack of third party apps to draw away iPhone users or enterprise capabilities to draw away BlackBerry users,” .
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