Palm giving away its m105 handheld

[Jason Dunn]

<a href="http://msnbc-cnet.com.com/2100-1040-933400.html?type=pt&part=msnbc&tag=alert&form=feed&subj=cnetnews">http://msnbc-cnet.com.com/2100-1040-933400.html?type=pt&part=msnbc&tag=alert&form=feed&subj=cnetnews</a><br /><br />Taking a page from Microsoft and Internet Explorer, Palm is giving away their el-cheapo m105 models if people buy the more expensive m500. Smart marketing? If the losses they take on this are minimal, hell yes. People love free stuff!<br /><br />"Aiming to reverse slowing sales, handheld maker Palm said Thursday that it will give away an entry-level m105 handheld to those who buy an m500 handheld. The monthlong promotion gives those who buy a $299 m500 a mail-in coupon good for a free m105. Palm spokesman Jim Christensen said that by giving away the devices, Palm hopes to spur sales now, while at the same time putting devices in the hands of new customers that might buy a pricier handheld down the line." Source: Randy Phillips

[Brad Adrian]

Wow. Talk about a gamble. My guess is what they're really trying to do is just get rid of the expense of storing all those extra devices. Hoping that someone will upgrade any time soon is a long shot. Even if the freebie does end up in the hands of someone who will adopt it, that person won't be ready to upgrade for at least another year.

[Ed Hansberry]

If the losses they take on this are minimal, hell yes.
Given Palm hasn't made a collective buck since going public 2 years ago, I'd say they weren't making money when they were selling the M105. And they have been forced to cut the M500 from $399 to $299 since introduction.

This is just an attempt to dump dead products at any price vs throwing them away later. It seems people are really going for the color products now, especially if you are in the $300+ range.

[PPCRules]

Actually, the m105 is not a bad unit for a Palm OS device.
Think about it.
What's it missing? Color and expansion. Not that I could get along without either of them now, but we think in terms of Pocket PC. I'd rather carry a m105 around in my pocket than my big PPC. It's once I take it out that I'd feel shorted. If you can accept what a Palm does, this would be great. Basic PIM stuff and more than enough room for AvantGo and a couple versions of Bible. Now if it was the m100, I could see people needing to upgrade real soon.
I think the other gamble is, who would upgrade to another Palm brand unit. Most people will end up getting Sonys.

[ChrisD]

That's one way to blow out inventory that's not selling! Also, I wonder how Gartner is going to track these sales? 2 devices per person does not make the market bigger in my opinion.

[farnold]

Will be easy to check the success of this campaign. Just wait until we see all these "brand-new, never used, original packed M105" devices at www.ebay.com for around 50 bucks - if that.

[Paragon]

This to me doesn't sound like the brightest move in the world.

I wonder how many people were considering buying 2 or more M500s for themselves and a spouse ect. and decided in stead to buy one m500 and give their spouse the free M105.

At least if they have them in inventory, on paper they at least are worth something. Improving their net worth. Although I must admit it would take a rather huge pile of them to make much difference.

If they are going to just give them away why not give them to some school boards around the country at least then there could be some marketing value.... Geeez isn't Palm great give all those PDAs away like that.... I doubt they would be cutting off any potential sales doing it that way either.

Man, it must be scarey having to give away your product like that.

Dave

[Timothy Rapson]

I suppose this may help Palm down the road.

Q.Once someone has started out with the free M105 their Dad gave them when he got an M500 for Father's day, AND he buys FITALY, MyBible, WordSmith and a few games what is he going to want next Spring when he graduates from High School?

A. He is going to get another Palm. By then it will be a choice of an ARM model with OS 5 and a $300 price tag, vs. a PPC 2003 model for $300. Palm may be just treading water, getting through the next 6 months to a year....and yeah, dumping 105s no one wants.

Now, if Toshiba would give a free e310 for the kid away with every e740 the Dad got that would be something.

I still eventually expect to see the average color PDA selling for $200 and the average Monochrome for $100.

[AhuhX]

Now, if Toshiba would give a free e310 for the kid away with every e740 the Dad got that would be something.


You beat me to it! :)

LOL, IF ONLY!

[Paragon]

e740 the Dad got



No more needs to be said!! :)

Dave

[Robert Levy]

That's one way to blow out inventory that's not selling! Also, I wonder how Gartner is going to track these sales? 2 devices per person does not make the market bigger in my opinion.

I think it is pretty safe to assume the *most* people who go for this deal will either give the second unit to a friend or family member or put it up on eBay... which *would* make the market bigger.

[Ed Hansberry]

I think it is pretty safe to assume the *most* people who go for this deal will either give the second unit to a friend or family member or put it up on eBay... which *would* make the market bigger.
No. Remember you have to pay for both devices outright and then submit a rebate form and wait for your money. Most people will not bother. It isn't like you go and buy an M500 for $299 and they have duct tape holding a M105 box behind it.