The online media has been abuzz about the Palm Pre since it first showed at CES back in January. Some pundits, in fact, are touting it to be Palm’s saving grace, the device that will bring them back from the ashes.
It may not be too far off a prediction too. Even though Palm is betting the house, car and, probably, the kids on the Pre, early word is pegging that the handset will pull through. Everything about it, from the hardware to webOS to the apps, looks to be in the right place.
However, an increasing number of analysts aren’t convinced. In fact, a number of them are predicting Palm’s demise as early as next year. But, why? Isn’t the overwhelmingly positive response to the Palm Pre enough to bring them back to prominence?
They cite numerous reasons for the lack of confidence in Palm’s ability to succeed. The most glaring and pronounced, however, is the fact that they’re not likely to siphon enough of the market to make a pronounced comeback. It’s not that hard a stretch too, considering that the smartphone market in the US already has two major players taking most of the consumer base: Apple’s iPhone and RIM’s Blackberry.
With the economy in a severe downturn, attracting more users to an expensive device isn’t that palatable a suggestion. In order to actually succeed, Palm will need to drive existing smartphone users away from their current services, which is looking more and more like a difficult proposition. Sure, webOS is awesome. However, so is iPhone OS 3.0 and, potentially, Blackberry OS 5.0, both of which will likely come within a month or two of the Pre.
Personally, I think Palm can be saved – either a takeover, or a buyout or by something. The Pre and webOS are too promising to disappear entirely. How it all plays out, though, is the exciting part and one I’ll be watching for.
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