Sprint Already Forecasting Pre Shortages

Posted By: Ryan Kairer Wednesday, May 20, 2009 10:43:18 AM

Sprint CEOSprint is already expecting long lines and short supply for the Palm Pre launch on June 6th. Sprint's CEO Dan Hesse told an investor conference on Tuesday that the company is expecting to have trouble meeting the initial demand for the highly anticipated device.

"We don't intend to advertise it heavily early on because we think we are going to have shortages for a while," Hesse said according to a Thomson Reuters transcript. "We won't be able to keep up with demand for the device in the early period of time."

Like many of the recent high profile consumer technology launches of recent times (think Wii, Xbox, iPhone) overnight campers and long lines are going to be a given. With such a wide rollout at Sprint Stores, Best Buy and select Wall-mart locations it remains to be seen how much stock will be available for the launch given such a wide deployment coupled with high demand.

Sprint is expected to remain the exclusive carrier for the Palm Pre in the US until at least the end of 2009.

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Official Announcement of Supply Shortage

2klbs @ 5/20/2009 10:24:47 AM # Q
Dang-

Is this reverse-psychology marketing to increase demand (did he really say "this is our flagship product but we won't make a big marketing effort until later"?), or reverse-reverse psychology of: "We need to fulfill our partnership agreement but don't blame us if you can't get one"?

Or reverse-reverse-reverse...oh, never-mind.

http://tiny.cc/pMnOr
End of Contract with Sprint- to become a "Pre-vert" or go Android?

RE: Official Announcement of Supply Shortage
vetdoctor @ 5/20/2009 10:50:47 AM # M Q
What happens when the market reverse reverses Sprint and everyone says, "I don't want to wait for a phone that's not there. I think i'l go get an iPhone".
RE: Official Announcement of Supply Shortage
SeldomVisitor @ 5/20/2009 10:55:29 AM # Q
Actually, if they walk into a Sprint store and there are no Pres available, the salefolks will sell them the new HTC that's coming to Sprint early June as well (or the other phones coming in June to Sprint).

Palm needs Sprint.

Sprint does not need Palm.

RE: Official Announcement of Supply Shortage
rmhurdman @ 5/20/2009 11:04:08 AM # Q
I'll do my part to alleviate the problem, by not buying one.
Palm -n- Sprint Sittin' inna Pre
2klbs @ 5/20/2009 11:23:32 AM # Q
SV- What do you base your statement on (that Sprint doesn't need Palm the way Palm needs Sprint)? Especially given the fact that the Sprint's customer run-off losses amount to about the same as the Pre units they projected to sell in the first year?

(file this under careful what you wish for): According to Sprint, it's not just about renewing/originating new contracts, this was supposed to be a "flagship" (Sprint's words) product that demonstrated the superiority of their (data) network.

Palm's Lynn Fox's comments in the NY Times are curious too, (trying to minimize the Pre impact and its roll in the acceptance in Palm's next generation of devices)- it almost sounds like they are preparing for damage control.
End of Contract with Sprint- to become a "Pre-vert" or go Android?

RE: Official Announcement of Supply Shortage
CFreymarc @ 5/20/2009 11:57:24 AM # Q
In my opinion, this is a classic artifical shortage announcement in an attempt to create a rush in purchases. After the first week, you will see plenty of units in stores to pick up. If they are sitting on stock in warehouses and saying there is a shortage, that is borderline trade fraud. What is next? Palm Pre coupons on boxes of breakfast food?
RE: Official Announcement of Supply Shortage
SeldomVisitor @ 5/20/2009 12:01:43 PM # Q
Sprint has multiple phones - covering all possibilities - including a bundle coming out concurrently with the Pre in June like that HTC.

They do not need Palm.

Palm has one phone coming out on ONE carrier.

They need that carrier.

Simple as that.

[the repeated-everywhere Me-Too Media crap about "Sprint needs the Pre" is just that - Me-Too Media repeated-everywhere crap. Like "AT&T has a 5 year iPhone exclusive!"]

RE: Official Announcement of Supply Shortage
abosco @ 5/20/2009 12:19:55 PM # Q
rmhurdman wrote:
I'll do my part to alleviate the problem, by not buying one.

LMAO!

SeldomVisitor wrote:
Sprint has multiple phones - covering all possibilities - including a bundle coming out concurrently with the Pre in June like that HTC.

I disagree. HTC has carved out a market by selling a thousand different phones at a million different price points. They fit the Windows style perfectly. The result is that they have a lot of phones out there, but none that are really distinct. On the other end of the spectrum, you have Apple who puts out one phone at a time. The end result is that if someone has an iPhone, it's plainly obvious. But if someone has a Fuze, another has a Tilt, and another a Touch Diamond, nobody would know they're all from the same carrier. It's like the Proctor & Gamble of the electronics world.

Brand power is everything at this point. While Sprint probably welcomes HTC, they need a big single-device smash hit. I do believe that they need Palm. They are down to 60 million subscribers and falling, while Verizon and AT&T are at 90 million and 80 million and climbing.

-Bosco
m105 -> NX70v -> NX80v -> iPhone -> iPhone 3G

RE: Official Announcement of Supply Shortage
twrock @ 5/20/2009 4:22:10 PM # Q
2klbs wrote:
SV- What do you base your statement on ....

The usual. He just makes up whatever BS he can to show Palm in the worst light he can. Nothing new here. Just typical behaviour for PIC's resident anti-fanboy.

Hey Palm! Where's my PDA with Wifi and phone capabilities?
RE: Official Announcement of Supply Shortage
CFreymarc @ 6/4/2009 2:05:41 PM # Q
Yup, a lot of anti-Hero's on here typing from their parents basements or the break room of an electronics retail store. Honestly, with no "Reasonable Voice" trashing the Pre at all during this tells me that this "heavyweight champ of PIC" is gone for good. At one Palm conference a while ago, someone said he was in jail. No confirmation there but it would explain why this mile wide target wasn't swiped at by him.
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Pre shortages

schmidtdustin @ 5/20/2009 10:51:39 AM # Q
Don't get me wrong I'm buying the Pre the first day its out, but if Palm ever wants to go head-to-head with the iphone they can't have supplies run out after a few people get the phone. They need as many Pre's out before the new Iphone release as possible.
RE: Pre shortages
blackstrat @ 5/20/2009 1:57:18 PM # M Q
I most likely will have to wait a couple weeks anyway... Even if I am near a sprint store, chance of me getting in are slim to none. Although, Bet Buy might be better, we shall see.
RE: Pre shortages
jca666us @ 5/21/2009 4:16:23 AM # Q
The shortage early on will be to get some free advertising, "Palm Pre sells out in one day!" blah blah blah

I agree - within a few weeks, Pre will be plentiful - however going by Palm's past history, I expect hardware glitches in Pre 1.0 that will be quietly fixed in the next production run.

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Cool Automagic Post Time Warp

2klbs @ 5/20/2009 11:33:07 AM # Q
My comment precedes the news posting- JJ Abrams takes over PIC
End of Contract with Sprint- to become a "Pre-vert" or go Android?
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See the comment made earlier about 30,000 Pres

SeldomVisitor @ 5/21/2009 12:26:06 PM # Q
Just made it elsewhere.

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