Palm to Drop Prices on Most Models

Palm Inc. is expected to announce cuts in almost its entire line of handhelds today. The only Palm model not getting a price cut is the m515.

Update: The new prices have gone into effect.

The wireless i705 is dropping from $450 to $400 and a $100 rebate is still in effect, bringing the effective price down to $300. The m500 is getting a long-overdue cut from $300 to $200, bringing it more into line with the prices of its competitors.

The $100 i705 rebate requires people to also sign up for the Executive Unlimited Annual Plan through Palm.Net, which costs $35 a month.

The m105 is dropping to just under $100, down from $150. The cuts in the rest of the m100 series are smaller. The m130 is being reduced by just $30 to a new price of $250. The m125 is moving a whole $10 from $180 to $170.

However, Palm will be offering a $20 mail-in rebate on the m125, bring its price to $150. This is part of a back-to-school promotion that Palm and Pepsi are putting on together. The m125 will be featured with Frankie Muniz of Fox Network's "Malcolm in the Middle" in large, in-store Pepsi displays at more than 100,000 grocery stores nationwide. The rebate lasts until September 9.

"Historically, summer is slow for PDA sales," Kenyon Scott, Palm product marketing manager, told Cnet. "Most suppliers use this time to create demand for sales through either re-pricing or promotions."

Thanks to Craig Bowers for the tip. Ed

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the prices are now there

I.M. Anonymous @ 7/25/2002 9:33:28 AM #
Just got the email from palm a couple minutes ago -- the prices HAVE now been dropped
RE: the prices are now there
I.M. Anonymous @ 7/25/2002 9:49:05 AM #
Someone forgot to tell the Palm Store, then. It still lists the m500 for $300
https://store.palm.com/Catalog/productdetails.asp?productnr=3C80800U
No they aren't
I.M. Anonymous @ 7/25/2002 9:50:59 AM #
I just checked Palm.com:
www.palm.com/products/handhelds/
No prices have changed as of 9:45.
RE: the prices are now there
I.M. Anonymous @ 7/25/2002 11:19:46 AM #
Why do I always seem to get these e-mails from Palm a day later than some other people? I can pretty much guarantee I won't get this e-mail till essentially the same time tomorrow morning.
RE: the prices are now there
Ed @ 7/25/2002 2:07:08 PM #
Palm has (finally) updated its prices on the Palm Store.

---
News Editor

So, new models in about a month, then?

I.M. Anonymous @ 7/25/2002 9:51:01 AM #
Not that the current models are bad, mind you (well maybe the 701 - for that price I could get a cellphone and a palm and save money on the monthly bill too).

But, all the harbingers of upcoming new Palm models are here: rumors, price cuts, and Consumer Reports just did a review of PDAs which must by divine law become instantly obsolete. ; )

Jon Acheson

RE: No, this is not about new model
I.M. Anonymous @ 7/25/2002 10:12:21 AM #
This is not about new models, have you seen them drop price on *all* models before they released something new?

This is about competition from other manufactureres, most SONY.

Real reason is.. they can not sell them well.
I.M. Anonymous @ 7/25/2002 10:20:46 AM #
Please take a look at here:
http://news.com.com/2100-1040-946190.html?tag=fd_top

Palm did not cut the price of its m515 device, which remains at $399.

From Palm product marketing manager, Kenyon Scott:
"The 515 has shown to be incredibly popular, so we are not cutting its price"

HOW UGLY! Now I know the reason of price cut is they don't sell well in those modles.

RE: So, new models in about a month, then?
I.M. Anonymous @ 7/25/2002 10:34:55 AM #
If demand is high for the m515 at the current price it would be dumb to lower the price. And as I recall, the m515 was released at the same price as the m505 and it has twice the memory (I won't mention the better screen as the m505 screen needed an upgrade anyway).
RE: So, new models in about a month, then?
I.M. Anonymous @ 7/25/2002 10:37:35 AM #
> Now I know the reason of price cut is they don't sell well in those modles.

Well, I'm glad to see the m515 is selling so well. And I'm sorry to hear that the S360 is selling so poorly. Sony recently cut the price on it and, according to you, the only reason companies cut prices is their products aren't selling.
And the T615C must have been a real flop because Sony cut it's price by a third.

Face it, prices get cut for all kinds of reasons, not just poor sales.

RE: So, new models in about a month, then?
I.M. Anonymous @ 7/25/2002 11:36:07 AM #
It also costs companies more to hold stock in warehouses than it does to cut prices to unload said stock, trolls.

Car dealers do this a lot. They'll cut you a deal to get the cars off the lot.

RE: So, new models in about a month, then?
useybird @ 7/25/2002 4:09:23 PM #
Whoopee! The M130 is down to $250. I got mine for $240 in April with my killer Best Buy employee discount.

--()-- Support the USA in the war against terrorism.

m500 vs m125

Scott R @ 7/25/2002 11:34:37 AM #
These prices all sound good, but with the m125 at $170 and the m500 at $200, I doubt the m125 will sell. That said, I predict that the m500 is being cleared out. Once inventory is gone, I predict the m125 (or a lower-RAM version) will become the $99 Palm low-end model of the future.

Scott

RE: m500 vs m125
graph @ 7/25/2002 12:36:16 PM #
isnt m125 a colored device and m500 not?

Palmpro, IIIe, Vx, IIIxe, m505
& Clie Peg-T665c owner
no!
I.M. Anonymous @ 7/25/2002 12:38:44 PM #
the m125 is b&w, you are thinking of the m130
RE: m500 vs m125
I.M. Anonymous @ 7/27/2002 4:13:37 AM #
though m500 looks more likely to buy... m125 better fits my jeans' pocket ;)


m125 owner

Bang for the buck

Palm_Otaku @ 7/25/2002 11:36:47 AM #
That's really quite a deal on the m500 (one of the finest greyscale devices out there IMNSHO). I can't really see people purchasing the m125 instead...

Time for Palm Inc's next-gen devices soon?

RE: Bang for the buck
I.M. Anonymous @ 7/27/2002 8:44:03 AM #
I agree. m500 is just unbeatable value. Good quality, does everything that is really useful and a good price.

Of course, the Sony sales team will now post 100 irrelevant and anonymous rebuttals ...

RE: Bang for the buck
I.M. Anonymous @ 7/27/2002 8:51:36 AM #
no thanks on the m500. Black and White Screen and NO-HI-RES???? For a couple of bucks more I'd get the T615C on clearance. The T615C right NOW is the best handheld for the money.

I have an m515 bought at inception.

RE: Bang for the buck
I.M. Anonymous @ 7/27/2002 7:46:24 PM #
Surprise, surprise, surprise. Guerilla marketing tactics are so predictable, aren't they?
RE: Bang for the buck
I.M. Anonymous @ 7/27/2002 8:14:01 PM #
"Of course, the Sony sales team will now post 100 irrelevant and anonymous rebuttals ... "

err. .. looks like you are the Palm Inc. sales Team. there's no way Palm Inc.'s PDA is anything good value, you could get the same thing (with high res screen) from sony for $50 less.

RE: Bang for the buck
I.M. Anonymous @ 7/27/2002 8:19:14 PM #
Good. Now there is only 98 irrelevant rebuttals to go. Keep it up Sony staff, your supervisers are watching!
RE: Bang for the buck
I.M. Anonymous @ 7/27/2002 8:21:43 PM #
LoL do you have no life or what ? I didn't know Palm's Sales Staff work OT on Saturday in order to save their hoplessly dying company.

My interpretation

I.M. Anonymous @ 7/25/2002 12:47:27 PM #
I think this lack of a price drop on the m515 means that the M515 might be around for a while longer and that the Oslo will come in at a higher price like 449 or 499.

I just don't think there's an m515 form-factor pda with os5 and new proccessor on the horizon.

I'm still hoping for an M515 replacment with hires screen. That would make it a very appealing pda.

RE: My interpretation
kevdo @ 7/25/2002 12:56:44 PM #
>I just don't think there's an m515 form-factor
>pda with os5 and new proccessor on the horizon.

That would be too bad because many of us WILL NOT go from a Palm V/m500 form factor to something larger (especially much larger). (only good news for me is that I won't have to get the Kyo 7135 and an OS 5 device in the same quarter)

Note to Palm: if you want us to upgrade (and, believe me, many of us want to) this is something that you're gonna have to deliver.

Note to Sony: give us a slim OS 5 color handheld with good buttons and Mac support and I would be happy to jump ship.

Note to Handspring: same as Sony above - except for you it means including OS 5 not 3.5...

-Kevin Crossman

RE: My interpretation
I.M. Anonymous @ 7/25/2002 3:44:02 PM #
I will again reiterate my comment from yesterday:

If Palm releases an "m525" sometime between now and the end of the year, with OS 4.1, a 66 mhz dragonball, beefed-up battery, and an illuminated grafitti area, all at a price no higher than $350 or so, they'll have a winner on their hands. It would bridge the hahdheld generations nicely until the ARM models come down in price. None of these changes would cost a bundle to implent; all of the above improvements are already on the market and it would only be up to Palm to wrap them all up in one tidy unit.

(Having high-res in such a unit would be icing on the cake but that's just too much to ask from Palm and they've already explicatly stated they won't do high-res under OS4).

RE: My interpretation
useybird @ 7/25/2002 4:13:10 PM #
I was just thinking... It would be kind of cool to have kind of a wider jog dial where the up/down buttons are and you could push to select.

--()-- Support the USA in the war against terrorism.

Palm Q2 market share.

I.M. Anonymous @ 7/25/2002 1:35:22 PM #
Palm Inc market share decline 33%. Well that explain the massive price cut across the board.

Overall Palm OS market share has fall below 50% mark, while PPC is growing slightly. Overall, Palm OS has completely lost the $400 and above market.

http://news.com.com/2100-1040-946298.html?tag=fd_top

RE: Palm Q2 market share.
I.M. Anonymous @ 7/25/2002 1:52:55 PM #
I see the only way a PPC company can get out of single digit percentages is combine two companies: HP and Compaq.

The over $400 market is a very small niche. The vast majority of people won't pay more than $250 for a PDA and no PPC will ever get below that.

Not surprised Palm's sales are down. I'm not buying anything until I see the OS 5 models and no-one else should, either.

RE: Palm Q2 market share.
I.M. Anonymous @ 7/25/2002 1:53:53 PM #
How about Sony NR70 series? It sells well.
RE: Palm Q2 market share.
I.M. Anonymous @ 7/25/2002 2:35:44 PM #
Palm's market is collapsing from that data, contrary to palm's February press release which says they are growing.
RE: Palm Q2 market share.
I.M. Anonymous @ 7/25/2002 3:13:30 PM #
Palm's share has dropped probably because of many people holding out and waiting for the OS5 stuff to come out, plus the fact that the overall market has declined. Of some note though is the fact that sony hasn't been gaining any real ground. It seems sony has picked up many of potential handspring customers while HP and Compaq had to merge in order to move in to second place. Other PPC makers aren't even on the map (toshiba and casio).

Basically Handspring looks like it's not gonna be around for long. That will leave 3 major players, Palm, Sony and HP. And the bottomline is that the Palm OS will remain very dominant over the PPC.

RE: Palm Q2 market share.
I.M. Anonymous @ 7/25/2002 3:15:48 PM #
Toshiba has a rise of 546.2% LoL ... I believe it'll all end up to be Toshiba VS Sony .. LoL ..HP having 18.6% market share after the merger, it's just a matter of time befor it slips back to the original 9%.
RE: Palm Q2 market share.
useybird @ 7/25/2002 4:16:30 PM #
Palm is kind of shooting themselves in the foot, so to speak, in the way that they are dropping in Market share by not releasing the OS5 devices yet. This is probably the main reason they are down.

PPC sales are up mostly because of the new Crappaq and To****a handhelds with wireless capabitlities. These are converts from Palm who want this kind of technology but are too damn impatient (as all of us are) to wait for Palm to release their new OS 5 Handhelds.

Once the new devices come out Palm will look at higher sales, because this is probably the most anticipated moment in Palm history.

--()-- Support the USA in the war against terrorism.

RE: Palm Q2 market share.
I.M. Anonymous @ 7/25/2002 8:20:54 PM #
"PPC sales are up mostly because of the new Crappaq and To****a handhelds with wireless capabitlities."

WHAT is it with the malignant slandering of competing companies' products (and its users)? Are you just jealous that Compaq incorporated BT first into its handhelds? Or Toshiba with integrated WiFi? You should be grateful that people have choices beyond Palm's licensees and/or the PalmOS. This is the only thing forcing Palm(Source) to innovate! Otherwise we'd be stuck in OS3.5 for another six years. People like you make me sick.


"These are converts from Palm who want this kind of technology but are too damn impatient (as all of us are) to wait for Palm to release their new OS 5 Handhelds."

Impatient? Not really.
These 'converts' are people like you and me who vote with their wallets. It happens that the Toshiba units are very nice and thus popular. Got a problem with that? You make this sound as if non-Palm users are heathens for not waiting for the oh-so-great OS5. It ain't the second coming of Jesus. Remember, PalmSource is playing catch-up to PPC with respect to multimedia and the things that Palm zealots once considered 'unnecessary'

new vs. reconditioned

I.M. Anonymous @ 7/25/2002 3:19:04 PM #
At these prices, a new m500 is a little over $10 cheaper than a reconditioned one from Palm.

Wonder how long it'll take them to notice that one?

-/phi

RE: new vs. reconditioned
bcombee @ 7/25/2002 8:45:05 PM #
Also, the reconditioned m500 is $5 more expensive than the reconditioned m505, another odd pricing quirk.

--
CodeWarrior for Palm OS technical lead
Programming help at www.palmoswerks.com

M105 vs. SL10

I.M. Anonymous @ 7/25/2002 3:18:53 PM #
Which is the better deal? the M105 lacks hires (does it really matter on B&W Lcd), storage expansion, and jog dial. They both have 8mb, similar size/weight numbers, use AAA batteries. The palm does come with a cradle while the sony doesn't. Obviously the Palm now has a huge price advantage ($50bucks = 33% cheaper than sony). Should be an interesting battle between these two low end devices.........
RE: M105 vs. SL10
I.M. Anonymous @ 7/25/2002 3:38:30 PM #
Umm, why compare to a m105; why not an m125 with an SD slot? That's a better comparison...
RE: M105 vs. SL10
I.M. Anonymous @ 7/25/2002 3:52:54 PM #
I posted yesterday at the tail end of the Sony SL10 article and I have a feeling no one ended up seeing that, so i'll mention it here again.

Best Buy's upcoming Sunday flyer has the new prices effective already, and there is an additional BBuy (not Palm) $25 mail in rebate on ALL handhelds. So that brings the effective price of the m105 down to ~$75 and the SL10 Sony down to ~$125. Unbelievable deals, no matter which one you choose. It's a shame the m100 is still not floating around, because they you could probably end up with one of those for around $50 bucks--it's still adequate for many users' tasks. Makes you realize how grossly overpriced those TI calculators are during the "back to school" rush...


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