Update 2: In a release announcing the Pixi, the latest Palm (NSDQ: PALM) device, Palm confirms that the Pre will be discounted by $50 and will now cost $150 with various conditions, rather than the original $200. Update 1: Just as quickly as the $100 discount on the *Palm* Pre materialized, *Sprint* has pulled the plug on the offer, telling Digital Daily that it was “put into the system in error.” It will honor the discount for anyone who was inspired to purchase a Pre within the past few hours that the offer went live — but it just reinforces the reputation of marketing mismanagement and poor internal communication that Sprint (NYSE: S) has spent the past few years trying to clean up.
Original Post: Sprint just dropped the price of the *Palm* Pre to $100 for new subscribers — meaning people can now get the touchscreen smartphone for just $99, with a two-year contract.
The mail-in rebate adds more fuel to the speculation around how well the much-hyped smartphone is selling, since neither Sprint nor Palm have released any stats. Analysts’ reports have either said that the Pre is meeting expectations — even in the face of a solid iPhone 3GS launch — or that sales are well below the benchmark, and falling.
The Pre price cut comes just a few weeks after Verizon (NYSE: VZ) lowered prices on many of its smartphones. The difference is that Verizon’s cuts are perceived as part of a push to clear out old inventory to make way for newer, more expensive phones — not pump up lagging sales — as some analysts, like Piper Jaffray’s Chris Larsen, are suggesting about Sprint’s discount (per FierceWireless).
Palm has maintained that every Pre-related business detail — from getting enough units in stores to meet demand, to creating a developer-friendly app platform — has been on track in terms of company goals. But the best way for Palm to curb rumors (and quell any investor unease) about its so-called iPhone-killer being a dud, would be to release some sales stats during its fiscal Q1 earnings call next week.
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