Palm Centro: 2 million examples of “price matters”

By Kevin C. Tofel | Tuesday, July 29, 2008 | 11:26 AM CT | 6 comments |

PalmcentrosprintPalm hit a milestone today: two million Palm Centros sold since the Palm OS smartphone was introduced. In fact, they hit the one million milestone just a few short months ago. Amazing and a good example of why price does matter in mobile technology. Actually, it’s two million examples, but why nitpick?

Here’s a smartphone that you won’t pay over $99 for after the standard two-year commitment and subsidy. In fact, I’ve seen the device on sale at brick-and-mortar retailers for as little as $49. A year or two ago if you had said to me "I think we’ll see a full-featured smartphone for under $100", I would said "You’re right, but what year do expect to see that in: 2010 or 2011?"

Why raise the "price matters" argument? Because it emphasizes the backwards trend we’re witnessing in the netbook market. Even the original $200 Asus became a $399 device for most… new models are even higher and that’s going to hurt consumer adoption to a degree. Congrats to Palm, however. They take a fair amount of ribbing on their product line these days, but you have to give them credit: they not only saw the potential for a low-cost smartphone, they got such a product to market. Two million of them to be precise.

Comments (6)

  • Not only is the Centro cheap, it’s also an excellent device.

    People knock Palm for their tired OS. To me, that tired OS is the best reason to be on a Palm device. What some people call old, others consider mature.

    If you have a software need, chances are there’s a Palm app. that has you covered.

    Nate — 5:36 AM on July 29, 2008 Reply

  • We bought my wife a Centro and paid full list for it because we didn’t want to go back under contract with Sprint. It’s a terrific little smartphone…and an incredible deal for $99. I’d have one, too, if it weren’t for my insistence on a full-sized SDHC slot (which my 700p has).

    Craig7:34 AM on July 29, 2008 Reply

  • indeed, one part of the eeepc bomb was the price, the other was the ui and os.

    now we are basically looking at cheap mini-laptops, there before was sold at a premium for road warriors that could or needed to afford it.

    my guess, microsoft put mud in the water…

    turn.self.off — 7:47 AM on July 29, 2008 Reply

  • Of course, another aspect to look at is profit margin: how much money does Palm make on each of these devices?

    Oliver — 9:04 AM on July 29, 2008 Reply

  • I agree with Nate, as does David Pogue of the NYTimes, Mickey and Joey of TheCellphoneJunkie, etc. The browser is sub-par, it should have bluetooth voice dialing, and better noise cancellation (mic on the front, maybe?) but other than that…

    Turned off data (not worth it to me), and have achieved cellphone-PDA consolidation for $49 on VZ’s “New Every Two” plan. Can’t buy any PDA for that price.

    That 2/10ths of an inch makes a big difference: you’re holding a candybar phone to your head, not a big slab of plastic. It fits nicely in your pocket, too. The included Dataviz DocsToGo and PocketTunes Deluxe are more “price matters” gravy.

    Yes, price matters. Even though it’s a great device, if it were priced at $150, I would have skipped it and got a free phone (Moto W755 or such).

    Joe T. — 10:15 AM on July 29, 2008 Reply

  • Since you brought it up, it’s not entirely off-topic: I have this…feeling that nobody ever intentioned to sell $200 notebooks forever, that it was planned all along to be, “well, but wouldn’t you really like a larger hard drive? It’s only another $50″. And then it’s, “Wouldn’t you like this more if it had a somewhat larger screen?” and so on, slowly dropping the lowest priced model as people gravitate to a better equipped notebook until people forget why they were interested in this category and prices are where they are now.

    bluemonq — 6:38 AM on July 30, 2008 Reply

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