If Palm (NASDAQ: PALM) wants to make a dent in the smartphone market (seemingly dominated by Apple [NASDAQ: AAPL], thanks to the iPhone), it needs its entry into the smartphone world -- the Pre -- to perform well. Roger McNamee, a Palm investor, believes that the Pre will make the iPhone history. With the first batch of iPhone contracts set to expire in June, Palm is targeting a same-month release for its smartphone. McNamee believes that on the "two-year anniversary of the first shipment of the iPhone ... not one of those people will still be using an iPhone a month later." McNamee contends that this scenario will come to fruition because the Pre will be "the coolest product on the market."
McNamee isn't alone ... this website lists 10 reasons to love the palm Pre; including a touch screen and a slide-down keyboard, the Pre's size, and the Pre's speed.
What I find interesting is that Palm has announced that its third-quarter revenue will be lower than expected, and some believe that this can be attributed to the Pre.
Technically, Palm has managed to weather the recent storm, as it is relying on double-barreled support from its 50-week moving average and the $6 level. All is not rosy for Palm, as the stock's current perch is lower than a couple of weeks ago, when the shares were battling resistance in the $9 region. In fact, the shares may have formed a double top in the $9 region. Patience may be key in waiting for an advance, as it may take until the Pre's release for the stock to receive a jolt.
Keep an ear out for the pre-Pre hype, as it could give an idea of the direction the stock could travel after the phone's release.
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Reader Comments (Page 1 of 1)
3-09-2009 @ 11:51AM
Satur9nine said...
I don't know if McNamee remembers, but two years ago the iPhone was not subsidized and you didn't need to sign a contract to get one. I should know, I was one of those people.
3-11-2009 @ 2:39AM
Dimitri.a@mac.com said...
You signed a 2 year contract when you activated the phone, check with AT&T, even if you paid full price. AT&T did let you upgrade early, but you could not cancel for 2 years without paying a early term fee.