Verizon Scraps Palm Pre Plans, Report Says

http://www.pcworld.com/article/172631/verizon_scraps_palm_pre_plans_repo
rt_says.html

Verizon has reportedly ditched plans to offer the Palm Pre early next
year. Poor sales at Sprint -- the Pre's exclusive U.S. carrier -- as
wellverizon palm pre as interest in handsets from Research in Motion and
Motorola contributed to the decision, according to The Street, which
cities "people close to the discussions."

Yes, it Will; No, it Won't

The Street's report refutes claims made earlier this year by Verizon CEO
Lowell McAdam, who said the carrier would offer the Pre shortly after
Palm's exclusivity arrangement with Sprint ended. A few weeks later, the
Wall Street Journal reported the Pre would come to Verizon in January
2010.

Despite previous interest in the Pre, Verizon is reportedly concerned
that Palm Pre sales have not exceeded one million handsets sold since
the device's launch almost four months ago. With the Pre failing to
deliver blockbuster sales numbers, Verizon is apparently hesitant to
invest time and money into rolling out the Pre.

America's largest carrier is said to have greater interest in new
offerings from BlackBerry maker Research in Motion, and Motorola's
development of Android-based handsets. Verizon is also gearing up to
launch HTC's Imagio, and may offer the HTC Predator -- another Android
device -- this fall.

It's All about the Apps

Another stumbling block for the Pre is Verizon's interest in selling
third-party smartphone applications through its VCast Store instead of
through device-specific outlets like Palm's App Catalog.

In July, Verizon held its own application developer conference to woo
third-party developers into its system, and is working with other
carriers around the world to unify mobile applications into one standard
that will work across multiple handsets.

Palm Answers, But Declines Response

Following The Street's report, a Palm spokesperson said the company is
committed to working with more U.S. carriers in the second half of next
year, according to Bloomberg. Despite the timing of the announcement,
Palm declined to comment on whether the announcement was in response to
The Street's report.

On Thursday, Palm also announced it has partnered with international
carrier O2 to bring the Palm Pre to the United Kingdom, Ireland, and
Germany in October. In addition to the three European Union countries,
the Pre is available in the United States and Canada.

All is Not Lost

Despite the news that Verizon has reportedly scrapped plans to introduce
the Pre, it's still an outside possibility that Verizon could introduce
Palm's first WebOS-based phone. The Pre rollout, however, would be on a
much smaller scale, with few handsets available across the country and a
modest marketing campaign.
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