I would never miss an opportunity to yank the chain of iPhone lovers, or Appleonians for that matter. They will fail to see the humor in this, but until the 3G iPhone is released the data points and headlines are likely to make them a bit uncomfortable. Although they would certainly never admit it:
Palm Inc. had the biggest jump in two months in Nasdaq trading after a researcher said its Centro e- mail phone won sales in the U.S. from Apple Inc.’s iPhone.
Palm had 13.4 percent of the market for advanced phones in the first quarter, up from 7.9 percent in the previous period, according to Framingham, Massachusetts-based research firm IDC. Apple’s share fell to 19.2 percent from 26.7 percent. Research In Motion Ltd.’s BlackBerry dominated the market with 44.5 percent, up from 35.1 percent.
The Centro, which sells for $99 with a carrier contract, debuted last year in a bid to lure more cost-minded consumers to Palm. The price is a quarter the cost of the iPhone. Anticipation that Apple will release a new iPhone with faster Web browsing also hurt sales of that device, said IDC analyst Ryan Reith. Analysts expect a new iPhone to go on sale this month, he said.
``The Centro’s been a success because it’s very attractive to someone who doesn’t want to pay $300 to $400,’’ Reith said in an interview. ``This summer, competition in this market will be as intense as it’s ever been.’’ Bloomberg
The best thing about the iPhone, at least for me, is that it might finally stick a fork in Roger McNamee and Elevation Partners, who cut a sweet deal for themselves, when they bought a stake in Palm Inc. (PALM-NASDAQ).
Perhaps McNamee and Elevation will be satisfied will 5% of the smart phone market by 2010, which might be enough to sustain the company. But Elevation would have been better off simply buying stock in Research in Motion or Apple, rather than fighting a battle with the two tech titans.
Meanwhile, Apple shareholders had better get what they wish for on June 9th, or there will be the devil to pay. In the meantime, RIM is mopping the floor with all challengers.
Just another opportunity to short PALM?
Palm Gains After Centro Wins U.S. Users From IPhone
Bloomberg
Um, McNamee At Odds over Palm
1440 Wall Street
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The content contained in this blog represents the opinions of 1440 Wall Street. This commentary in no way constitutes a solicitation of business or investment advice. It is intended solely for the entertainment of the reader, and the author. No Positions
I fail to see the logic in Bloomberg’s conclusion. How did the Centro “crush” the iPhone, when it’s market share isn’t as high? Especially when the same article sums up the situation....prospective Centro buyers are (for the most part) not not the same consumers as prospective iPhone buyers! I use a Blackberry personally, but having spent years with smartphones, I recognize the iPhone as a top-tier device, and a Centro as entry-level.
Yes, pretty meaningless as they run down the iPhone inventory.
Yes, the question is how much share will PALM eventually snare? Maybe they can make a go of it under 10%, where Apple might not play buy RIM probably will.
I also have not seen anyone handicapping where Apple and RIM will settle in, market share wise. And also, too much emphasis is on the iPhone, I would like to see more intelligent discussion on their computer line up.
Good friend just bought new iMac yesterday, pretty slick machine!
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