Palm Pre drops to $99 at Best Buy (update: "error is being corrected," says Best Buy)
By Nilay Patel 
posted Jul 26th 2009 1:40PM
posted Jul 26th 2009 1:40PM
Update: Best Buy marketing manager John Bernier has chimed in via his Twitter account to say that the Pre is $199 and that the "error is being corrected." It'll be interesting to see if any lucky customers managed to nab the device for less than a Benjamin.
[Thanks to everyone who sent this in]
Read - Hesse's comments
Read - $99 Pre at Best Buy
NO
Yes.
Price drops a month and a half after launch.
Must be selling like those refurbished 8GB iPhone 3G that just dropped to $49, eh?
@ Freaking lijt
They need to do something to stay in business. Apple is sure kicking their ass.
OMFG this is a NO-BRAINER! I have one already, but I'm definitely gonna use this opportunity to buy one for my wife. Palm Pre rocks... for anyone considering it take words from jealous iSheep with a grain of salt... no other phone multi-tasks like this one does.
... You multitask from your computer and in your everyday lives, don't you? Why should your smartphone be any different?
Sprint also is a great network. Their rates, dollar for dollar, are much better than AT&T or Verizon. CNET has a great article about this: http://bit.ly/hv0Ot ... Customer service has improved in third-party surveys, and Gizmodo showed data speed tests were much better for Sprint overall compared to AT&T and Verizon.
REMINDER: iPhone did the VERY SAME THING shortly after launch. Those claiming this is a move of desperation need to wake up.
Perhaps Apple was desperate, too, in the beginning.
Palm, of course, being deeply in debt with essentially no other products, is necessarily a little more desperate.
=================
As an aside, I've seen no other evidence than the Precentral "article" about this price drop.
@vara411
Um no, Apple didn't lower the iphone to $99 shortly after the launch. Nice try though.
Hey Paul, doing some research makes you less likely to make an ass of yourself. Just saying.
I'm glad. The very fact that people are defending apple and their ability to maintain high prices is such an unusual argument.
Apple not needing to drop prices is a proof of bad/undisciplined consumers who hand the capitalism over to the businesses.
I hope enough people jump apple's ship to force them to try a little harder.
Because the Pre has never had a final price of $300.
Well, Paul, maybe Apple saw that sales were dropping off so fast that they were "desperate" to keep the device's slaes up, thus the steep price drop.
It's as plausible a reason as there being a new model, and they wish to clear out the early stuff to make way for it. You hear these same two excuses whenever Apple has a price drop or sales of some product of theirs is down.
But the big difference is that with the Pre, Apple fanatics commenting on this will always go to the most negative reasoning...That is that the device is terrible and no one wants it.
@look_around_you
Apple dropped the price initially because they switched from a no/low subsidy pricing model to that a heavy subsidy pricing model, not because of poor sales.
@ Vara411
I multitask on my 3G S daily while keeping some battery life unlike the pre with my Push notification apps or just jailbreak to enable background apps for multitasking. I can also create and distribute any of my apps. On the pre there isnt much to multitask is there? A little bit of web surfing maybe? And unlike the pre I can get an Iphone on any network around the world.
@ Paul Chapel
We can't hold of all these fanboys forever there is going to be more by the minute. Ah well at least tried while most apple users are too scared we fight for the truth!
Actually the price drop of the original iPhone was because Apple didnt want to cannabilize its sales of the iPhone by introducing the iPod Touch. So they brought the price down in line with the Touch, that way only difference was the phone feature (well, and email and other stuff the Touch didnt have at launch) and not the phone + $200
Well the Pre has always been $199 out the door at Best Buy so it's an extra $100 off. Best Buy gets a massive commission for each Pre they sell (we're talking several hundred dollars), that's why they're willing to eat the difference and offer the discount instantly to everyone instead of a rebate and now they're pushing an extra $100 off. I guess they figure the extra volume will make their total commissions higher.
"Or maybe the manufacturing costs dropped enough for Apple to price it lower."
Could be. That wasnt my point.
We have the price on this dropping to $99, based on who knows what at this point. But what are the early, predictable, Apple fan (troll) postings?
"DUE TO LACK OF INTEREST."
"They need to do something to stay in business. Apple is sure kicking their ass."
But when An Apple product is reduced in price, like let's say OSX, it's not out of desperation because Windows is "kicking their ass" and that their is a "lack of interest" in that OS. No, it's always something positive or benign.
And from what anyone can tell, it's just at Best Buy.
None of these clowns seem to think things through, just look for the opportunity and attack.
@Paul Chapel
The Pre was never $299 at BBY. It was $199, so this is a 50% discount.
Only an Apple fanboy would think that a phone is inferior, because it's not expensive. The Pre is an extremely capable device and the fact that it's now only $99 makes the Pre/iPhone decision that much easier for some people. I think that this probably had something to do with the iPhone 3G 8GB priced at $99. Ignorant people look at storage space and wonder why they should spend double on the Pre, when they're both 8GB.
Also, this has only been announced at BBY, so this isn't necessarily a move by Palm or Sprint. BBY makes ~$400 for every activation, so eating $100 on the device isn't that big of a deal to them.
"We can't hold of all these fanboys forever there is going to be more by the minute. Ah well at least tried while most apple users are too scared we fight for the truth!"
Gesus, what a drama queen. Sign up for WoW, and go on something resembling a real crusade.
"I multitask on my 3G S daily while keeping some battery life unlike the pre with my Push notification apps or just jailbreak to enable background apps for multitasking.
Push is not multitasking. I can have Opera open, Kinoma playing streaming music, and check my email on a WinMobile PDA. That is actual multi-tasking.
And no my battery doesn't go dead after one hour, nor do I have to do some simi-legal voodoo like jail breaking to pull it off.
"How many of these Pre Fanboys would be willing to put money on this? How likely do they think that PALM lowered the price to clear out inventory just a month after releasing their first phone. Is that more likely or is it more likely that it's just not selling well?"
Why would Apple sell the next release of their superior new OS for $29. How much you wanna bet it is because they know people really dont care about it, and prefer Windows7? How much you Apple fanboys want to put down that Apple is quaking about how poorly they will do with MS's new OS?
Yeah, both sounds ridiculous.
Oh, and Paul, the sale is only at Best Buy. Did you even bother to look that up first? Oh yeah, this is all about attacking an Apple competitor.
You and Alex can continue on you fight for truth, justice, and the Apple way!
Paul, did you get banned or something? Whatever happened to Paul *A* Chapel? Did you lose the A?
Either way, stop trolling. Really, it's pointless.
To the best of my knowledge, Snow Leopard is only $29 for Leopard users - it will be $129 for all other upgrades. I could be mistaken.
The difference, of course, is that all of Apple's operating system sales are for upgrades to their own computers. No one is going to be making a Snow Leopard purchase instead of buying Windows or any other operating system. The Pre, of course, is just one of many phones available on Sprint, and of even more phones available overall..
That said, I have no interest in being part of this argument, because I just don't care. I felt facts needed to be stated.
@ Paul, who said:
"Hey, look, the Pre was $300 okay. I don't care if you could get a discount at certain places. As someone else pointed out, you can get a refurbished iPhone at AT&T for $49. Does that mean that the price for the iPhone 3G is $49. No way, so don't get mad at me because PALM ran a rebate scam.
The Pre was priced at $300. Period."
This is so hypocritical it's not funny. By that exact same logic, the price of the Pre is still $300.
@ Paul Chapel:
Wtf are you talking about two thirds? $300 to $99? The phone costs $200 under normal circumstances with a two-year contract agreement, so it's a price cut by half. Not to mention this is a Best Buy marketing stunt, the sale only lasts til close next Saturday (a one week sale). ALSO not to mention is the fact that Pre sales are NOT that far behind the sheep-phone:
http://www.wirelessandmobilenews.com/2009/06/palm_pre_news_high_sales_iphone_comparisons_facebook.html
Paul, what exactly is missing between your ears that doesn't let you comprehend the discounted price of the Pre was never $300? It's always been $200, whether you get it through Sprint and have to use the MIR, or whether you buy it through Best Buy or Radio Shack where they take care of the MIR for you. This isn't an opinion or anything, it's the freaking facts.
Well the market for these types of phones is now tougher than when the iPhone originally came out. Early adopters were willing to waste that much money on an iPhone just to have it right away. Then Apple dropped the price a couple months later. Now there are more and more phones like this and they need to entice customers more. The same way Apple has kept dropping the price of the iPhone and created the illusion that the 3GS is better by having the "cheap" one at $99. You can't expect Palm to keep the price higher when there is the "cheap" iPhone at $99 can you? How could they compete? And that isn't to say that the pre is on level with the 3G and the 3Gs is better...Apple just likes to create illusions like that with their pricing structures.
"Hey, look, the Pre was $300 okay. I don't care if you could get a discount at certain places. As someone else pointed out, you can get a refurbished iPhone at AT&T for $49. Does that mean that the price for the iPhone 3G is $49. No way, so don't get mad at me because PALM ran a rebate scam.
The Pre was priced at $300. Period."
Amazing that the Apple reality distortion field is getting stronger and stronger.
@ Paul Chapel
The price of the Palm Pre was 200 everywhere! (300-100 mail in rebate at Sprint or 200 at Best Buy). So it's a $100 drop. Period.
Two years ago there was a $200 drop for the iphone. Double than the Pre! Period.
And remember that the price of a phone with a 2-year contract must include the 24 monthly fees. So it's no-sense to say "the price is dropped to one third" etc. Period.
You are the biggest troll of the planet. A real Apple fanboy.
"If the Pre was $200, you would have been able to walk in anywhere and buy it for $200. Since it was $300, that wasn't the case. Why is it so hard for you guys to accept that? The Pre was $300."
If the Pre is $100, you would be able to walk in anywhere and buy it for $100. Since it is $300 at Sprint, this isn't the case. Why is it so hard for you to accept that Paul? The Pre is $300.
ITT: How to feed trolls
@ everyone
Will you please stop arguing Apple vs. Everything else? The iPhone is an excellent device and is terrific if you are a mac user since it syncs so nicely with their product line. The Palm Pre is also an excellent device for other reasons. I use an HTC Ozone with (oh no) WinMo which works marvelously for me. I honestly don't understand why everyone (mostly Paul Chapel and the other Apple fan-boy trolls) has to bring Apple into every conversation about a product. If someone decides to buy a smartphone other than the Apple iPhone, i bet they had their reasons for doing so. Who cares? You like your apple products. Terrific! I am happy for you. There are other people out there who buy products made by a different company for their own (and equally acceptable and intelligent) reasons. Why must you be annoying by shoving Apple B.S. down our throats? It's annoying and highly unnecessary. Please stop.
I'm simply using your own logic to show you how flawed it is. You're comparing apples and oranges, and you know it, but you shouldn't make it this obvious.
Paul, you should recognize that competition is great for everyone, it causes innovation and eventually leads to lowers prices. But you are too much of a fanboy to see that...
I fell bad for you...
@ Paul Chapel who wrote: "How likely do they think that PALM lowered the price to clear out inventory just a month after releasing their first phone." The iPhone was (and still is) Apple's first venture in the cellphone market. But the Pre definitely ISN'T Palm's first phone. As a matter of fact, Palm has been making cellphones long before Cupertino even dreamt of the iPhone.
@ Paul Chapel
That's not my point. My point is that it is usually you who starts the arguments (read: flamewars) and keeps them going until those of us who don't care want to go somewhere else for their gadget/tech news. I am just saying that it is highly irritating and I want it to stop.
@paul
And still, by the *same* logic, since this is only a sale at *Best Buy*, and not Sprint, this is still a discount. The new Best Buy price is as every bit of a sale as the old Best Buy price, yet you're arguing it differently as if this were now the Pre's true price. The pre is still $300 at Sprint, Best Buy is still having a sale, and you suck at making arguments. All "facts," although that last point is a fact sans sarcasm indicators.
Are early Pre buyers starting to bitch and moan yet about how they had to pay so much money for their Pres and now people can get them for $99? Palm took advantage of the loyal early adopters and screwed them severely. Maybe Palm can give those early buyers some $100 iTunes coupons to ease their suffering.
Still a $99 Pre seems like a great deal if being on Sprint is any good. I think it's a good deal for people that are not concerned about who's winning the smartphone wars and just need a smartphone that has decent features and is simple to use.
I sure hope sales haven't slowed so much that they can't move Pres for $199. That would be an outright disaster. I hope they're just using this as a temporary price to spike sales. If they haven't moved a million Pres by now, then I guess the game is over for Palm.
Paul Chapel is hands down the biggest turd on the planet. I think he was pooped out by Hitler.
"Let me guess, you're one of those guys who don't have a problem with the Apple Haters who say distorting things about Apple, just with people who speak the truth about Apple"
Paul, you say the most distorting things about Apple and products made by all other companies. I will say it out loud, the Internet hates you. Get a fuc.king life. I feel bad for myself actually responding to you, but I feel even worse that somewhere in this planet you do exist and that you are stuck living with yourself.
How many different accounts do you have now? How many times do you need to be blocked?
Some misinformation here on the original iPhone price drop.
Apple lowered the price by $200 on September 5th, they announced 1 million on September 10th, after 74 days. When they lowered the price they gave everyone who had purchased one a $100 gift card, which a lot of people complained about, but in reality Apple didn't need to give anyone anything. The primary reason they lowered the price was to drive sales volume. Apple really didn't know how successful they were going to be, and when they saw how fast it was selling they lowered the price to drive volume for the holiday season, and it worked.
Apple did not lower the price due to a changing subsidy model, that happened with the 3G, when the price went to $199 and $299, and the AT&T pricing went up a bit. There is speculation that Apple had a revenue share with AT&T for the 1st iPhone which was also discontinued with the 3g (in favor of an up front subsidy), but no one really knows except for AT&T and Apple, just like only they know how long the exclusive contract is in place for.
This practice is pretty common. Get the early adopters to pay a premium and test the market, then lower the price to drive volume. The difference between Apple and Palm is that Apple has $30 Billion in cash and Palm is surviving on capital from external sources and was pretty close to the edge a few months back. If the iPhone had failed it wouldn't have crippled Apple, but if the Pre fails Palm is done.
Also, seems to be a bit early in the quarter for price drops, no? Perhaps they are planning on selling the Pre to students? Or just a way to combat the typically slow summer quarter?
@ Look_Around_You:
I finally understand the source of your burning Apple hate: if *I* had to use Windows Mobile, I'd be in a constant state of rage too.
P.S.: WinMo - LOL!
I give Apple hate where hate is needed and give them praise where praise is needed. Apple's financials are looking good, but their mac sales are down just as much as pc sales. Is the world one giant Apple hater to you? Does everybody who takes a breath hate Apple? You have the most low-ranked comments of any person I have ever seen. Are you telling me that Apple financials are that good, yet the entire world is an Apple hater? Where are they getting all this money then?
You do not provide facts to back up your arguements. You provide fragments of sentences from Wikipedia and links to pictures you took that are filled with bias.
In the end we will all die and it will not matter what companies products we used in our lifetime. What does it matter to you? Can't you just live your life knowing you get to use your Apple products and not waste your time here making others hate you? If Apple knew the way you talked they would be ashamed.
@ Jordan: "but their mac sales are down just as much as pc sales."
This isn't true. Apple's Mac sales for the latest reported quarter rose 4% compared to the same quarter last year while the overall PC industry sales have dropped. Microsoft noted the sharp slowdown in PC sales this quarter as a reason for their 29% net income drop this quarter.
PC sales are declining; Mac sales are rising. Please double check your facts before making claims.
@Jeff:
http://www.crunchgear.com/2009/07/16/apple-is-now-in-5th-place-in-pc-sales-under-toshiba/
http://blog.ziggytek.com/2009/07/16/apple-slips-to-5th-place-in-computer-sales-passed-by-toshiba/print/
http://virtualreview.org/tech/zoom/1121745/apple-drops-to-5th-in-us-computer-sales-electronista
Logic states that if PC sales are declining AND Apple slips into 5th place that Apple sales are declining as well.
I see Paul a Chapel and others cleared out of this thread quickly once it became clear this was a Best Buy mistake
You have a girlfriend? Is she physically real or can only you see her?
I only read the headlines, provide me some links with your facts and I will check them out. See that thing you did there again? You didn't provide any facts.
look Paul, we don't care about the most popular. I'm sure Big Macs are wicked popular, but I stay far away as possible.
Ok. Well thanks for actual providing facts to back up your statements this time.
If I did the math right, which honestly it's been a few years so I'm willing to question myself, but a 4% increase to a total of 2.6 million is only an increase from 2.5 million. You are getting this excited over an increase of 100,000 computers? I always knew the userbase was small, but if that math is correct I'm amazed by how small it actually is and how an increase of 100k computers is that big of an accomplishment for Apple to get all the fans in such an uproar.
This whole conversation is not about who has more credibility. This whole conversation is about the price of the pre, and more specifically it should be about how Best Buy made an error. Without Best Buy messing up this whole conversation wouldn't exist.
I admitted I was wrong about the Mac sales. See I can do that, I can admit when wrong. This is something you can't do and then begin to make random stuff up to try make people belive you. I notice how when I point out that a 4% increase is only an increase of 100,000 computers you don't really acknowledge that. Seems to be something you like to do a lot, ignore facts that you don't like.
You could have simply accepted me thanking you for giving the facts, but instead you had to try and be a pompous jacka.ss about it. Instead you try to turn it around at me and attack me.
Why do you try to attack these so called "Apple Haters"? What's the point? The thing about these blogs is you're not going to change anybodys mind. Just like nobody is ever going to change your opinion of Apple. We're all nerds, that's why we're here. We know what we like and we know what we don't like. What's the point man? To make you feel like you're working for Apple?
They need to do something to stay in business. Apple is sure kicking their ass
D'oh, can you get that as upgrade price? I'm just out of my 2 year contract with Sprint.