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Sprint breaks its sales record with Palm Pre

Sprint Nextel executives said Monday that the launch of the much anticipated Palm Pre on Saturday hit a new sales record for the company.

Neither Sprint nor Palm is discussing specific sales figures, but Tim Donahue, vice president of business marketing for Sprint, said that the launch exceeded the company's expectations.

"We experienced our best one day of sales and single weekend sales for any phone we've launched in our history," he said. "We sold out of the device over the weekend in most of our store locations. And it happened at a much faster rate than we had planned on. "

While the crowds that showed up on Saturday morning to buy the Pre at Sprint stores and other retail locations where the phone was offered were small in number compared to the crowds that have gathered for the past two iPhone launches, analysts are calling the launch of the Pre a success. A J.P. Morgan report estimated that more than 50,000 phones were sold in the first two days the phone was available. The Wall Street Journal cited analysts who said that between 50,000 and 100,000 Pres had been sold.

Now Sprint and Palm must wait to see if the momentum will continue.… Read more

Palm Pre's big day

NEW YORK--The much-anticipated Palm Pre may have gotten almost as much hype as the Apple iPhone over the past six months, but its opening day fell short of the attention iPhones grabbed on their first days.

Unlike the huge crowds of people that formed long lines and camped out in front of Apple and AT&T stores days in advance of the iPhone's launch, crowds for the Palm Pre were much smaller and tended to arrive in the morning just before stores opened.

Neither Sprint nor Palm have released official figures about how many devices they hoped to sell on the Pre's first day. But Sprint representatives had been trying to downplay expectations for iPhone-like crowds ahead of the launch. Sprint spokesman Mark Elliott told The New York Times earlier this week that the company not only didn't expect long lines for the Pre at its 1,100 stores, but that it didn't want them.

And it looks like the company got its wish. Salespeople at Sprint stores in New York City said a handful of people gathered outside their locations early Saturday morning. But most lines didn't even come close to the madness experienced on iPhone launch days.

Crowds tended to be bigger at Best Buy stores, which were offering the device for the $199 price without the $100 mail-in rebate. Customers buying a Pre from Sprint, the exclusive carrier of the device, pay $299 at the time of purchase and can get $100 back with a mail-in rebate. According to Rich Pesce, a Sprint spokesman, most new phones offered through the carrier have the mail-in rebate offer.

Many Best Buy locations sold out of the Pre almost immediately.… Read more

The 404 357: Where Wilson calls dibsies on Dan Hesse

Wilson breaks some Sprint and Palm Pre information, based on an interview he did with CNET News reporter Maggie Reardon and Sprint CEO Dan Hesse. This makes Jeff infinitely jealous, because Wilson got to hold a Palm Pre before Jeff did.

Dan Hesse denied that Verizon and AT&T would be getting the Palm Pre in six months time, saying that the reports had the facts wrong. Wilson thinks that Sprint probably has the option to extend its exclusivity in six months. Wilson also thinks that the Palm Pre is a little too small and a little too thick. Reminds us of something we'd rather not say or write.

In more phone news, Jitterbug has released a new version of its Jitterbug cell phone. Remember the one last week that couldn't even dial 911 in some cases? Well, Jitterbug has added text messaging to this new model. Yeah, we don't really think that grandma is going to be really into T9 text messaging.

Plus, we think Jitterbug is opening up itself to the worst deluge of tech support calls on the planet by having direct tech support access built-in to the cell phone. Our grandparents drive us crazy enough when they ask us to set up their VCRs. Imagine if that was your job!

Grandpa: Why doesn't my son call me any more?

In more puzzling economic recession news, we find it pretty interesting that the tattoo removal business is booming. Apparently, that face tattoo was a great idea when the economy was booming. Now, you'll be hard pressed to find a job doing much of anything that doesn't require a face mask if you've got one.

Finally, in the big news of the day, we let the world know that musician and inspirational speaker, Andrew W.K., will be coming to guest on The 404 on June 18. Be sure to get your iPods, Zunes, iTunes, and RSS readers all fired up to check out this interview. For those of you who don't know, check out any party scene in a movie released in the last decade for his hit "Party Hard." He'll be on to promote his new show on the Cartoon Network, and Justin will be dedicating his life to the man. We're serious. We think Andrew W.K. should bring bodyguards. Take care and have a great weekend everybody!

EPISODE 357 Download today's podcast Subscribe in iTunes audio | Suscribe to iTunes (video) | Subscribe in RSS Audio | Subscribe in RSS VideoRead more

Sprint CEO says Pre deal is longer than six months

Update 7:55 a.m. PDT: Comments from Dan Hesse's presentation at the press event here have been added to this story.

NEW YORK--Verizon Wireless's claims that it will be offering the Palm Pre within six months are not accurate, says Sprint Nextel's CEO Dan Hesse.

"They need to check their facts," Hesse said in an interview at a press event here to launch the Palm Pre. "That just is not the case. Both Palm and Sprint have agreed not to discuss the length of the exclusivity deal. But I can tell you it'… Read more

Pre vs. iPhone: Which offers the better value?

The Palm Pre's slick new software and cool design may make it the first true iPhone challenger on the market, but the competitively priced service plans from Sprint Nextel make the device an even more compelling alternative for frugal cellphone subscribers.

In terms of features, the Pre matches the iPhone on most bells and whistles . And it even has a few new capabilities not seen on the iPhone, such as an actual QWERTY keypad and the ability to have multiple applications open at once.

But for financially savvy shoppers, the Pre on Sprint's 3G network offers a value proposition that may just be enough to tip the scale when deciding between smartphones.

In terms of the upfront cost of the devices, the iPhone and the Pre are the same. The 8GB iPhone 3G costs $200, and so does the Pre with a $100 mail-in rebate. But it's really the service contract from Sprint that sets the Pre apart from the iPhone from a cost perspective.

"Feature for feature these phones are very comparable," said Peter Pham, CEO of Billshrink.com, a Web site that helps consumers cut waste out of their monthly bills. "But when you look at the total cost of ownership, the Pre on Sprint's network offers better value for many consumers."

Here's a breakdown comparing the two service plans:… Read more

Boost Mobile to expand retail outlets

With prepaid carriers enjoying good times in this recession, Sprint Nextel subsidiary Boost Mobile is preparing to reap the benefits. Matt Carter, Boost's president, told Reuters that his company will open 50 new retail stores by the end of the year.

The new outlets, which will open around the country in cities like Atlanta, New York, Chicago, and Philadelphia, will only sell Boost phones and services. Currently, Boost operates just three stores in Miami, Los Angeles, and Houston. Boost products are available at some Sprint retail locations, but they're typically regulated to a corner of the store.

Boost … Read more

Could the Kindle DX save Sprint Nextel?

If Amazon's new bigger-screen e-reader, the Kindle DX, lives up to the hype, it could be good news for Sprint Nextel.

Amazon's CEO Jeff Bezos on Monday unveiled the much-anticipated large-screen Kindle e-reader in New York City. The new Kindle DX is geared toward readers of personal and professional documents, newspapers, magazines--and textbooks, a potentially huge target market.

Analysts are expecting this new Kindle to be a big hit. The larger screen and PDF reader will help open up the device to a whole new market.

While huge sales of the new device will obviously benefit Amazon, it'… Read more

Sprint blames economy for Q1 customer losses

Update 7:22 a.m. PDT: This story was updated with comments and information from the company's conference call.

Sprint Nextel is blaming the economy for a steep decline in subscribers, though its prepaid and wholesale businesses are seen as important growth areas as the company faces stiff competition.

Meanwhile, financial losses mounted in Sprint's first-quarter earnings released Monday.

"We are happy about the success of Boost Unlimited (prepaid, no-contract service) and our wholesale business," Dan Hesse, Sprint's CEO said during a conference call with analysts and investors on Monday. "But the economy has … Read more

FAQ: Why you're still paying early-termination fees

It's been almost a year since a judge in Alameda County, Calif., ruled that Sprint Nextel's early-termination fees are illegal, and yet Sprint and every other major U.S. wireless operator still charges customers a fee for canceling their services before a contract expires.

So what gives? Why are these pesky early-termination fees still around if they are against the law?

That's a good question and one that many readers have asked me over the past year. Because I get so many questions about these fees, I decided to put together this FAQ to help people understand … Read more

Sprint Nextel to outsource network management?

In an effort to cut costs, Sprint Nextel may outsource management of its cellular network to equipment vendor Ericsson and transfer 5,000 to 7,000 U.S. employees to that company as part of the deal.

That's according to The Wall Street Journal, which quotes sources familiar with the matter as saying the beleaguered cell phone operator could end up paying Ericsson as much as $2 billion over several years to maintain the thousands of cell sites that carry Sprint's wireless voice and data traffic. The WSJ quotes those sources as saying the deal could slash Sprint'… Read more