Palm Pre Rumored To Cost More Than $200 -- Possibly $399

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Posted January 9, 2009 - By r_pad

Palm's Pre mobile phone has been getting a ton of buzz, despite its stupid name. Its sleek looks and novel OS have made it one of the biggest hits of 2009's Consumer Electronics Show. It's been a day since Palm's big announcement and the initial euphoria is wearing off, which has people thinking in more practical terms. How much is the Pre going to cost? Well, according to All Things Digital, it'll be more than $199. The site's Peter Kafka wrote:

"The biggest unknown is price, which went unmentioned during the demo. My assumption is that Palm (PALM) would try to take market share by coming in significantly lower than the $200 or so Apple wants for its iPhone. But when I ran that theory by Palm CEO Ed Colligan , he looked at me liked I’d peed on his rug. 'Why would we do that when we have a significantly better product,' he asked, then walked away."

There's even a rumor floating around that the phone will go for $399 -- subsidized!

As I wrote yesterday, the Pre will launch as a Sprint exclusive. From what I've seen so far, the Pre is a sexy device that has enormous potential, but I don't think Palm or Sprint is in a position to jack up the price. Both companies are struggling and both desperately need a big win. The Palm Pre could deliver just that, but only if it's priced competitively. This makes Colligan's arrogant reply to Kafka pretty surprising, since it adds a shadow of doubt to the bright buzz the Pre has been generating.

Do you think the Palm Pre can take some sales away from Apple's iPhone and Google's various Android phones (there will be several by the time the Pre is released)? Do you think Palm and Sprint can afford to price the Pre at $249 or higher? Are any of you even interested in this phone?

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