Palm Pre and Smartphone Market Trends

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
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