Palm Pre: Sprint Hasnt Spent Enough to Market Device?

Channel Partners

August 7, 2009

1 Min Read
Palm Pre: Sprint Hasnt Spent Enough to Market Device?

Sprint Nextel Corp. (S) has not laid out enough money to market the Palm Pre, the device that could save the wireless carrier from financial ruin.

So says one blogger and telecom consultant.

“Sprint needs a big promotional campaign for the fall of 2009,” P.J. Louis writes for Garson Lehman Group. “Supposedly, a low-cost smartphone will be coming out later this year so Palm may be able to generate significant sales.”

But does struggling Sprint have the resources to launch such a campaign? That’s debatable. The company just announced another quarter of losses to the tune of $384 million and 991,000 subscribers.

Still, Sprint did show a fairly significant cash and cash-equivalent reserve on its second-quarter report, and it spent 3 percent less on sales and marketing than during the same period a year earlier. So maybe the wireless provider does have something up its sleeve. Like reducing the Palm Pre shortages, perhaps. Subsidies could take a big bite out of a plan to increase Palm Pre supplies, though.

Louis says it well: “I have been pretty hard on Sprint. Turnarounds require speedy action. Turnarounds are dynamic. When you see something is not working then change what you are doing and don’t wait for an entire quarter to pass. It is early August 2009 and Sprint’s Palm Pre promotions have not been overwhelming. In short, Sprint has not spent enough.”

Read more about:

Free Newsletters for the Channel
Register for Your Free Newsletter Now

You May Also Like