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Palm Investor: Pre to Prey on iPhone
Friday, March 6th, 2009 at 11:38 PM - by Jeff Gamet
What's the one device that could get people to dump their iPhones? According to Palm backer Roger McNamee, that would be Palm's upcoming Pre handheld. Mr. McNamee is certain that once iPhone owners get a taste of the Pre, they'll be ready to switch as soon as their AT&T contracts run out, according to Bloomberg.
"You know the beautiful thing: June 29, 2009, is 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," Mr. McNamee said.
The likelihood that Mr. McNamee is right, however, seems slim. Odds are that at least a few iPhone owners won't be enamored with Palm's Pre, and some that would otherwise consider the multimedia smartphone might be concerned about buying a device from a company that looks to be stumbling in the market.
Palm has seen US$650 million in losses over the past six quarters, and preliminary reports for the company's third quarter sales fell short of analyst estimates by some 50 percent. Those numbers have some people concerned about Palm's future, but not Mr. McNamee. He sees Palm's technology as years ahead of the competition and as a draw for new customers.
RIM's Blackberry is relying on 13 year old technology for its operating system, according to Mr. McNamee, and Apple's iPhone operating system uses nine year old technology. In comparison, he sees the Pre's OS as just the ticket to give Palm the boost it needs.
"Think about it -- If you bought the first iPhone, you bought it because you wanted the coolest product on the market," he said. "Your two-year contract has just expired. Look around. Tell me what they're going to buy."
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