Palm VII Series Not a Flop

Posted By: Ed Friday, April 6, 2001 8:34:08 AM

Back in February, we ran a discussion thread called "Is the Palm VII Series a Flop?". The primary reason for it was a statement by a Giga Information Group analyst that "Only about 40 thousand of the existing 100 thousand to 150 thousand Palm VII users subscribe to the wireless service". Palm's recent quarterly earning statement shows this to be incorrect.

At the end of November, Palm.Net had over 149 thousand subscribers and during Palm's most recent financial quarter, this figure grew 27% to over 190 thousand subscribers.

As a comparison, OmniSky, Palm.Net's biggest rival, has about 35 thousand subscribers.

During the months of December to February, Palm's revenue from its Palm.Net service was $11.2 million, which is up 28% from the previous quarter and up 250% from the same quarter last year.

The success of Palm.Net is important to Palm's future as they hope to get much of their revenue from this service. The biggest delay in this plan has been component shortages that have hobbled Palm's production of the VII series since its inception. However, the company now has a sufficient supply of all the parts it needs and has been actively marketing the VIIx since February with a $100 discount off the price.

While the VIIx appears to be doing well, Palm's CEO recently pointed out that he has never liked it. He has said in the past that Palm is planning to release a replacement model in the second half of this year that is more along the lines of the m500 series and offers instant messaging, instant e-mail, and voice. Naturally, it will have to be somewhat larger than the m500 series in order to fit in the extra wireless equipment.

He describes this device as being better than the RIM Blackberry. "We can do everything that (Research In Motion) does not."

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Handspring

I.M. Anonymous @ 4/6/2001 10:50:50 AM #

If the palm.net revenue is the issue why not make a springboard module that will allow handsprings to access the service. I currently own a VII and an Edge and would love to access palm.net through my Edge. I'm in NC and Omnisky has no coverage here but palm.net has very good coverage.

Great Idea!

I.M. Anonymous @ 4/6/2001 11:08:13 AM #

I think this is exactly what Palm should do. You can use web clipping from other wireless companies but Palm isn't getting the money. Putting out a Palm.Net SB module would make Palm alot of $$$.

RE: Handspring

atrizzah @ 4/6/2001 5:06:55 PM #

The only thing is that so many Handspring owners are kind of rebels against Palm and would automatically oppose it unless it has some special features

Peace Out
Alan

RE: Handspring

I.M. Anonymous @ 4/6/2001 10:12:11 PM #

i don't think so. the handspring 'rebels' you read on the net and hear about are just 'the squeaky wheel' of the bunch.

i think that the palmOS community overrides the handspring/palm differences.

RE: Handspring

I.M. Anonymous @ 4/7/2001 12:07:15 AM #

It's a definitely a good idea. It will help to make all Palm users, regardless of the hardware manufacturers, feel welcome when they use a standard or common service. In addition, it helps advertisers if they know that there is a common place to show their wares to many potential customers. Maybe, Palm.net can be like the NTT i-mode service in Japan.
I believe this is necessary so that the next wave of wireless internet or communication will explode just like the old internet.

RE: Handspring

I.M. Anonymous @ 4/7/2001 7:51:49 AM #

At least now I see others agree that it doesn't sound like a bad idea. Wonder if Palm watches this board or if they would be open to a "company" developing such a springboard? If they made the hardware that would really be stretching it but I don't see where they could possibly object to someone else doing it.

Kevin

for what it was made it's perfect

I.M. Anonymous @ 4/7/2001 11:01:58 AM #

the VII was created for the purpose of mobile net browsing that's why it's not standard in other models

right now there is not enough market to make it standard. although with people beaming to their phones now i see it becoming more readily avaible

Palm Net

I.M. Anonymous @ 4/7/2001 3:25:21 PM #

Give me more k, for my cash and I'll sign back up.

Palm V sled

I.M. Anonymous @ 4/8/2001 9:41:12 AM #

Why doesn't Palm make a sled for the V series that can access Palm.net? Yeah, it would cut into sales of the VII, but the money NOT spent on buying a VII would go to buying a Vx and the sled. Palm wins either way.

Actually, at this point, they'd probably go for a module for the M10x or M50x series...

RE: Palm V sled

I.M. Anonymous @ 4/8/2001 7:31:38 PM #

There are two sleds produced by Australian companies that allow the MIK to be used over both MobiTex (400 MHz) and DataTAC 4000/5000 networks. WaveNet (www.wavenet.com.au), and dotWAP (www.dotwap.com). There are also numerous GSM sleds, OhFish.com, RealVision.com.hk and UbiNetics.co.uk spring to mind... I've played with all of these except the UbiNetics GSM sled and they are all very cool.

RE: Palm V sled

I.M. Anonymous @ 4/9/2001 1:32:53 PM #

Yeah, I know there are wireless sleds available. However, I believe the only way to access Palm.net is with a Palm IV. I'm surprised that Palm has limited the service to only one of their products (at the moment...rumors of a M70x series have started up). If they put out a sled for the V/Vx or something for any of their other models, they could drum up more business for Palm.net. They would lose some sales of the Palm VII, but I think the cost of the sled plus the monthly service fee (which must be profitable, look at all the companies with subscription fees) would more than make up for the lost sales.