How Low Should They Go?

[Brad Adrian]

One thing that the Palm product line has had that Pocket PCs lack is a very inexpensive, low-end model (like the Zire). Being the Founder and Head Geek of the W?BIC! Club, I typically buy the new devices with the most of the latest and greatest technologies. But, not everybody has the same "needs" that I do.

So, what do you think? Assuming that manufacturers could offer one, does the market need an inexpensive (~$100) Pocket PC?

[Zack Mahdavi]

I think it will be a good idea to get people attached to the brand, but I don't see how a $100 model can bring in lots of revenue for a company. I actually think it might hurt the company since more support calls will be made.

However, brand recognition is always a good thing. It would be nice to get some friends hooked to Pocket PCs by introducing them to a $100 model.

[arnage2]

do what palmone does, only give 90day free support

[Gremmie]

I think it will be a good idea to get people attached to the brand, but I don't see how a $100 model can bring in lots of revenue for a company.

The Zire is one of the best in gross sales (dollars, not units sold). Simple economics, it depends on the elasticity of demand.

[Shadowcat]

It may help educate people about what Pocket PCs can do. Most of my friends always ask "what can you do with it" and they usually end up saying "that's a little expensive, don't you think?" Some of them do decide that Pocket PCs are useful tools (often gradually) but they would never spend the kind of money that we spend now. If someone produced a cheap Pocket PC I think it would help gain more marketshare and educate people on the uses of Pocket PCs. People may decide they want more features and that they are worth the high price tag and step up to the more full featured models. I would finally be able to try convincing my friends to buy one if they become cheap enough.

[Zack Mahdavi]

I think it will be a good idea to get people attached to the brand, but I don't see how a $100 model can bring in lots of revenue for a company.

The Zire is one of the best in gross sales (dollars, not units sold). Simple economics, it depends on the elasticity of demand.

Sorry, wrong use of words.. I meant to say that I don't see how this could generate much profit for a company. Yeah, there will definitely be large revenue, but I think these things are sold on such slim margins.

[Pony99CA]

Assuming that manufacturers could offer one, does the market need an inexpensive (~$100) Pocket PC?
I don't think it would hurt the market -- unless people started associating Pocket PCs with lower quality.

The next logical question is, what would people be willing to give up for a <$100 Pocket PC? Would you accept 32 MB memory, a monochrome display, less battery life or no expansion slots?

Steve

[Pony99CA]

I think it will be a good idea to get people attached to the brand, but I don't see how a $100 model can bring in lots of revenue for a company.
The Zire is one of the best in gross sales (dollars, not units sold).
Are you referring to a specific Zire model or the Zire line? Regardless, as the Zire line is Palm's "low-end" line, that means they're the lower priced Palms. If you are correct that they bring in some of the best gross revenue, they would also have to be leaders in units sold.

Steve

[Gremmie]

From what I understand, it's the Zire line. And yes, it is implied that if Zire is the top grossing line and it is low priced, then it must be the highest in units sold. But it can also be true the Zire is the top in units sold and not be the highest grossing line--just clarifying.

But I agree, they are probably not high margin devices. However, devices are not usually high margin for the manufacturer. A fifth of the street price goes to the retailers, typically a $100 per unit. But accessories do not yield high profit for the stores but are high margin for the manufacturers.