Palm enters low-end phone market with Centro

[Ironwalt]

Palm enters low-end phone market with Centro
Thu Sep 27, 2007 1:50pm EDT

By Franklin Paul

NEW YORK (Reuters) - Palm Inc (PALM.O: Quote, Profile, Research) introduced its smallest smartphone on Thursday, making its first push into the low end of the mobile market in a bid to revive growth prospects and offer a cheaper alternative to Apple Inc's(AAPL.O: Quote, Profile, Research) iPhone.

Hoping to entice consumers looking for a low-cost upgrade, Palm has priced the new "Centro," a smaller and lighter version of its Treo smartphone, to sell for about $100.

Both devices feature a full keyboard, touch screen, and the ability to read and send e-mail or manage documents and spreadsheets.

The Centro weighs only 4.2 ounces and is a bit bigger than a credit card. It will sell exclusively through Sprint Nextel Corp (S.N: Quote, Profile, Research) for the rest of the year in the United States.

Palm executives say the Centro is targeted at traditional mobile phone users who want a more powerful device at a moderate price. The Treo tends to cost about $300 and above.

"Palm Centro has the power of a broadband smartphone at the price of a standard 12-key phone," Ed Colligan, president and chief executive officer of Palm, said in a statement.

Although executives say the Centro is not meant to compete directly with the iPhone, which costs four times as much, it's hard to not compare the two since they both have a touch screen, can surf the Web, manage photos, music and e-mail.

Colligan said the Centro compares more with the BlackBerry Pearl from Research In Motion Ltd (RIM.TO: Quote, Profile, Research).

Palm declined to say which other carriers might sell the Centro after Sprint's 90-day exclusivity period expires. Apple has an exclusive multiyear iPhone contract in the U.S. with AT&T Inc (T.N: Quote, Profile, Research).

Jupiter Research analyst Michael Gartenberg said the Centro is "not particularly hip or cool," but the large swath of phone buyers seeking multimedia and business applications at a low price may follow their wallets.

"You may very well have some iPhone buyers who say 'I love the concept and the phone, but $399 is out of my price point. But $99, I can afford,"' Gartenberg said.

However, he said he laments Palm's decline from its former position as an innovator in handheld devices. The Treo line continues to run on aging Palm operating system software and it has lost the buzz it once commanded.

"This is the company that defined the cool, usable smartphone but has fallen behind what its competitors have been offering in terms of design," said Gartenberg. "The mantle of uber-cool phone has passed from Treo to iPhone."

The Centro's introduction comes as a complex year for Palm draws near its close. It suffered a public relations nightmare with Foleo, a much-hyped portable computer that was harshly criticized when it was unveiled in May and abruptly canceled in September, just weeks before it was to expected to ship.

The Foleo suffered the wrath of several technology blogs that saw the product as disappointing. After Palm said in August that the Foleo would be delayed by software issues, Deutsche Bank analyst Jonathan Goldberg told Barron's: "There's something wrong with the company."

Shareholders have soured somewhat on the stock, which is down 16 percent over the past six months.

Still, analysts say the stock may deserve watching as it enters a transition phase, now that Palm has sold a 25 percent stake to private equity firm Elevation Partners and brought in former senior Apple executive Jon Rubinstein as executive chairman.

[Ironwalt]

Press Release Source: Palm, Inc.


Palm Centro Brings Palm Ease of Use to Traditional Mobile Phone Users for $99.99, Exclusively from Sprint
Thursday September 27, 2:00 pm ET
New Compact Design Available in Two Colors


NEW YORK--(BUSINESS WIRE)--Designed for individuals and traditional mobile phone users looking for a better way to manage their professional and social lives, Palm, Inc. (NasdaqALM - News) and Sprint (NYSE:S - News) today introduced the Palm® Centro(TM) smart device, at $99.99.(1) With voice, text, IM, email, web, contact and calendar capabilities, a full-color touch screen and full keyboard, Centro brings Palm simplicity and organization to customers who want to stay connected with co-workers, friends and family.(2) Centro will be exclusive through Sprint in the United States for 90 days and is available in onyx black or ruby red.
Source: Palm, Inc.


·With Centro, Sprint customers can quickly and easily text co-workers and friends, manage email, keep track of their schedules, check stock quotes, watch videos on YouTube(TM), keep current on the latest news, capture and share pictures, browse restaurant reviews on Yelp(TM), and get directions on Google(TM) Maps--all in one small, compact phone.(2) Centro operates on the Sprint Mobile Broadband Network -- the fastest and largest national mobile broadband network -- giving customers a fast and flexible experience with entertainment and resources on the go.

Fresh Design for New Customers

With a fun, new compact design, Centro is the smallest and lightest Palm phone to date. Centro has a modern, stylish look that feels comfortable in the hand, pocket or evening purse.

Centro was designed as a great phone, messaging, and organizational device, and is incredibly easy to use. It allows users to easily connect with friends, family and co-workers by voice, email or text. And with its full keyboard, Centro makes it easy to quickly and efficiently type text messages and respond to emails, communicating complete thoughts and ideas. Since Centro comes with the Palm OS®, it offers all of the great organizer functionality that Palm is renowned for, such as a detailed and integrated Contacts list. Also, the simple and handy calendar makes it easier to manage increasingly busy lives, whether it's juggling business meetings or keeping track of school activities.

As the newest member of the Palm family, Centro is expected to attract new users to the smartphone category. According to IDC, the smartphone market is shifting to the mass market; U.S. smartphone shipments will grow from 13.8 million in 2007 to 74.4 million in 2011.(3)

"Palm Centro has the power of a broadband smartphone at the price of a standard 12-key phone," said Ed Colligan, president and chief executive officer of Palm, Inc. "People looking to have all their contacts and calendar at the touch of a button, plus YouTube streaming videos and the Internet can now get it in a small, cool design with the trademark Palm ease of use. If you're thinking about stepping up to a smartphone, the Palm Centro should be your choice."

Exclusive Sprint Content and Services

With Centro, customers can leverage the speed of Sprint's Mobile Broadband Network - reaching more than 224 million people, 12,988 cities and 1,166 airports - to access helpful and exciting multimedia content, including the following:

Sprint TV(SM) - Watch live TV or video-on-demand with full-motion video and vivid sound or catch the latest news, sports, weather, entertainment and movie trailers on the go. Choose from more than 50 live television channels and watch programs such as CNN mobile, FOX sports and E! Entertainment; access NFL Network and special programming via Sprint Exclusive Entertainment.
On Demand - Set up personal preferences and get customized news, sports, movies, and weather updates all based on your zip code. Stay informed and connected regardless of where you are on the Sprint Mobile Broadband Network.
Sprint Picture Mail(SM) - Share on-the-go experiences immediately. Take full-color digital pictures and store or send directly from your Centro. Customers also can order prints of their favorite digital photos and pick them up at leading photo centers.
Sprint Mobile eMail - Get easy, mobile access to up to three email accounts from well-known providers, such as AOL®, Windows Live (includes MSN® and Hotmail), Gmail, Yahoo!® and more. Sprint Mobile eMail is a free download for any Sprint data subscriber.
Sprint IM - Extend instant communication from your PC to Centro with access to Yahoo! Messenger, AOL's AIM® service and MSN Messenger.
"Sprint customers can seize the day with Centro to stay on top of emails, use text or Sprint Instant Messaging for quick answers, manage appointments, view documents or to make use of a multitude of other productivity boosting and entertaining features all at SprintSpeed(TM)," said Danny Bowman, vice president of customer equipment for Sprint. "As the first provider of this unique phone, Sprint is demonstrating its commitment to giving customers the best products and service available on the Sprint Mobile Broadband Network, the fastest and largest national mobile broadband network."(4)

Additional Palm Centro Features and Benefits

Superior Phone - Centro's touch screen and keyboard, combined with the simplicity of Palm OS, make it easy to use key features such as one-touch speakerphone, conference calling, ignore a call with text messaging and Bluetooth® connectivity.
Easy Text Messaging - Centro's full keyboard makes typing out complete messages fast and easy when sending text, pictures, audio and video clips. Plus, Centro keeps all your conversations in a chat-style view, just like IM, so you can see the entire conversation unfold.
Personal and Corporate Email - New users to the smartphone category now have an easy mobile email solution using Microsoft Direct Push Technology(5) for delivery of Outlook email as well as personal email, such as Gmail, AOL and Yahoo.
IM with AIM, MSN, or Yahoo! - Compose messages quickly and easily with a full QWERTY keyboard. Instant message your buddy list with direct access to Yahoo, Windows Live Messenger or AOL's AIM service.
Web Browsing - Fast and easy web access on the Sprint Mobile Broadband Network at fast EvDO speeds. The full keyboard and touch screen provide quick access to online information. The built-in Google Maps application offers fast access to directions, traffic updates and local search.
Multimedia - "Sideload" songs and manage music easily with Sprint Music Manager. Centro is the first Palm phone to include PocketTunes Deluxe, a $39.99 value. Shoot pictures or video with the built-in digital camera.
More information on Centro is available at www.palm.com/centro. Centro multimedia materials are available from Business Wire (BW: Multimedia Gallery: Public View), Palm's Multimedia Library (Palm - About Palm, Inc.) or Sprint's media relations website (Sprint | Newsroom Home Page).

Pricing and Availability

Expected mid-October, the Palm Centro smart device will be available in onyx black or ruby red from all Sprint sales channels, Palm stores and online at Welcome to Sprint - Cell Phones, Mobile Phones, Plans for Personal and Business Wireless and www.palm.com/centro for $99.99 with a two-year service agreement, available discounts and promotions(1) and required service plan. Centro customers may subscribe to any of the voice calling plans available on the Sprint Nationwide PCS Network. To take advantage of data capabilities, customers can add any of the available Sprint Power Vision packs, which range from $15 to $30 per month. Customer subscribing to any Power Vision pack plan of $25 or more per month will be eligible for the $100 mail-in-rebate offer. For delivering Centro users the ultimate value, Sprint recommends the Power Vision Pro Pack for $30 month, which includes unlimited text messaging, data access, web browsing, email, Sprint Picture Mail/Video Mail, On Demand, NFL Mobile, Sprint TV and Active Sync (data and content access without a Power Vision pack is subject to casual data charges).

Customers can sign up to be notified of availability of Centro from Sprint at www.sprint.com/Centro or be among the first to pre-order from Palm at www.palm.com/centro.

[Mobile Mike]

Here's what the red version looks like. It will also be available in black as well.

From Phonearena.com

[SteveW]

Here's an interesting short piece about the Centro...

Palm And Sprint Unveil The Centro For Consumers

Posted by Eric Zeman, Sep 27, 2007 01:12 PM

The most striking aspect of Palm's new gadget is that it is absolutely tiny. Palm CEO Ed Colligan's hand dwarfed it at today's press conference at the Digital Life show in NYC. Not only is it tiny, it is positively a consumer-focused device.

The pitch given to the media was spot on. Of the 160 million cell phones sold annually in the U.S., just 5%, or 8 million, are smartphones. This is a powerful 5%, though, as it demands all the attention of the media and enterprise. Just look at the media phenomenon that the iPhone created since the day it was announced.

Despite the attention given to the smartphone market, Palm is restrategizing and targeting this new device at the remaining 95% of the market. With its $99 price point, it's being positioned as a phone for digital media consumers and creators who want keyboard-enabled communications devices without the smartphone, or business productivity, stigma. (As powerful as they are, Treos, BlackBerrys, and other smartphones are just not cool to whip out on a Saturday night.)

Palm and Sprint (NYSE: S) worked together to integrate the media applications and Web browser so it will be easier to share pictures, videos and other content. Of course, it still uses the Blazer Browser, which requires Web sites to be reformatted before they can be viewed on the device. This makes the EV-DO data radio similar to a V-8 that is only firing perhaps 4 or 6 cylinders at a time.

Browsing speeds aside, the Centro sports most of the features you'd expect on a media-focused phone. CEO Colligan did take one thinly veiled jibe at the iPhone, saying, "The Centro is no EDGE device."

The Centro is a new foray for Palm. One that is is late in doing. Its competitors -- Nokia (NYSE: NOK), Motorola (NYSE: MOT), RIM (NSDQ: RIMM), others -- already have launched consumer-focused devices that do many if not all of the same things as the Centro.

Its attractively low price point will be one small thing in the Centro's favor. That's at least a start.

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[AnthroMatt]

I think it is ugly!