Report: No Palm Pre for Verizon Wireless
TheStreet.com is reporting that Verizon is having second thoughts about offering the Palm Pre in January.
The Palm Pre may not be coming to Verizon Wireless after all.
According to a report from TheStreet.com, Verizon Wireless execs are reconsidering whether to begin offering Palm's touch screen smartphone in January as many have anticipated.
The Pre was announced at CES in January amid much fanfare. And after months of anticipation, Palm . Shortly before the device was launched on Sprint's network, Verizon Wireless CEO Lowell McAdam .
Sprint's CEO Dan Hesse, which left many market watchers expecting a Verizon version to land sometime in January 2010. Hopes for a Verizon version of the Pre were bolstered recently when Palm's new CEO Jon Rubinstein said he .
But now it looks like Verizon is having a change of heart. The Street.com said its sources have cited several reasons why Verizon execs may be getting cold feet. For one, the Palm Pre has had modest sales compared to sales of competing devices such as Apple's iPhone or Research In Motion's BlackBerry devices. According to story, Sprint has not sold more than a million Pre phones so far, which has spooked the Verizon execs.
Another issue is that Verizon supposedly wants its VCast application and download store to be featured on the phone. But this will compete directly with Palm's own app store. Yet another reason why Verizon might be balking at a deal is that the company plans to put most of its marketing might behind new RIM BlackBerry devices and the.
Supporting the Pre would not only require Verizon to invest in more marketing to push the device, but it would also require the company put resources into supporting Palm's WebOS operating system.
If TheStreet.com story is true and Verizon does not sell the Pre, it will be a major blow to Palm, which needs to expand its sales channels for the device. The company has alreadyfor the Pre. Bell Mobility in Canada and Telefonica's O@ in the U.K. and Germany are also exclusive partners.
Palm representatives were unable to be reached, but they declined to comment in TheStreet.com story. And Verizon Wireless representatives declined to comment.