The quote below hits us via the Wall Street Journal:
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The Pre, which went on sale Saturday, delivered on high expectations that positioned it as an iPhone rival, with analysts estimating sales ranged between 50,000 and 100,000 units. Now comes the tough task of sustaining that momentum by replenishing the sold-out stores and dealing with rising competition.
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While this sales figures are unseen in the recent history of Palm Inc, they are not phenomenal: the iPhone regularly sells over 100k units in the first sales weekend.
However, this is not the problem: if Palm can sell 50k units a week, they are on their way to become fat. The real problem takes the shape of upcoming announcements: while Apple’s iPhone 3Gs was not too impressive (IMHO), other vendors are planning to hit the road with impressive devices in the near future.
This could become a problem for Palm, as its sales currently live off hype: the product’s App Store is hardly populated, document editing does not work, etc. If another, more hip device drops before Palm can address the shortcomings, sales momentum can drop off by the time the volume shipments arrive…which could have disaterous effects for the company.
Stay tuned!
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