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Software industry

Palm Pre and Smartphone Market Trends

Strategic Insights

— 1 min read

Palm Inc. is set to release its new smartphone, the Palm Pre, on June 6, priced at $199.99 with a two-year contract from Sprint. The announcement has sparked interest in the smartphone market, which has seen significant growth, with sales reaching 3.1 million per month and expected to exceed 5 million by the end of the year. The market leader, Research In Motion, holds a 44% market share, followed by Windows Mobile and Apple's iPhone.

Key Takeaways:

  • The Palm Pre will be available on June 6, priced at $199.99 with a two-year contract from Sprint.
  • Sales of smartphones have grown significantly, with 3.1 million units sold per month and expected to reach over 5 million by the end of the year.
  • Research In Motion holds a 44% market share, followed by Windows Mobile (27.5%) and Apple's iPhone (20.5%).
  • Palm's market share has declined from 2.5% to 1.2% between January 2009 and April 2009.
  • Even if Palm sells one million Pre phones in the second half of 2009, it will still be a relatively minor player in the market.
  • The Pre's availability at Best Buy, RadioShack, and Walmart stores is uncertain, with some trade sources suggesting restricted availability to build hype.
  • Users will have to sign up for a data plan, costing from $69 to $99 a month, although this may change by the end of June.

Statistics:

  • 3.1 million smartphones sold per month (current run rate)
  • Expected to exceed 5 million units sold per month by the end of the year
  • Research In Motion market share: 44%
  • Windows Mobile market share: 27.5%
  • Apple's iPhone market share: 20.5%
  • Palm's market share: 1.2% (down from 2.5% between January 2009 and April 2009)

Sources:

  • Zacks.com via COMTEX
  • News.palmnewsletters.com
  • Comtex SmarTrend Alert:

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  • Comtex News Network, Inc. (www.mysmartrend.com)
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