Report: No Palm Pre for Verizon Wireless

The Palm Pre may not be coming to Verizon Wireless after all.

According to a report from TheStreet.com, Verizon Wireless execs are reconsidering whether to begin offering Palm's touch screen smartphone in January as many have anticipated.

Palm Pre

(Credit: Sprint Nextel)

The Pre was announced at CES in January amid much fanfare. And after months of anticipation, Palm launched the device in June exclusively on Sprint Nextel's network. Shortly before the device was launched on Sprint's network, Verizon Wireless CEO Lowell McAdam said it would offer the Pre on the Verizon Wireless network within six months.

Sprint's CEO Dan Hesse said the device was exclusive to Sprint through 2009, which left many market watchers expecting a Verizon version to land sometime in January 2010. Hopes for a Verizon version of the Pre were bolstered recently when Palm's new CEO Jon Rubinstein said he expects the device to be offered on other networks very soon.

But now it looks like Verizon is having a change of heart. The Street.com said its sources have cited several reasons why Verizon execs may be getting cold feet. For one, the Palm Pre has had modest sales compared to sales of competing devices such as Apple's iPhone or Research In Motion's BlackBerry devices. According to story, Sprint has not sold more than a million Pre phones so far, which has spooked the Verizon execs.

Another issue is that Verizon supposedly wants its VCast application and download store to be featured on the phone. But this will compete directly with Palm's own app store. Yet another reason why Verizon might be balking at a deal is that the company plans to put most of its marketing might behind new RIM BlackBerry devices and the Motorola Google Android devices that will be launched later this year.

Supporting the Pre would not only require Verizon to invest in more marketing to push the device, but it would also require the company put resources into supporting Palm's WebOS operating system.

If TheStreet.com story is true and Verizon does not sell the Pre, it will be a major blow to Palm, which needs to expand its sales channels for the device. The company has already announced a few other deals for the Pre. Bell Mobility in Canada and Telefonica's O@ in the U.K. and Germany are also exclusive partners.

Palm representatives were unable to be reached, but they declined to comment in TheStreet.com story. And Verizon Wireless representatives declined to comment.

[The_happy_switcher]

RIMM tanking in AH after earning reports. Add Palm to the list of dead meat/roadkill under the Apple iphone juggernaut.

[AppleSuxLeo]

Thats why PALM jumped 15% a couple days ago ;)

[myles taylor]

AppleSuxLeo, it's sad to see you haven't gained any sense in your absence. <br /><br />Palm jumped 15%, did it? It's selling at $16. Apple is selling at $183 which is around 250% of what it was in the last year. <br /><br />I don't agree with The Happy Switcher, but you're just spewing garbage.

[The_happy_switcher]

Yeah, and just lost 15 percent in after hours.

[jaguar717]

It all depends on where you got in. Palm is up 426% YTD to Apple's 115% because the former sold off a lot harder.<br /><br />In the past year Palm is up 128% to Apple's 43%. Since the beginning of 2008 Palm is up 211% to Apple's 14%.<br />You can go on Google Finance and cherry pick time frames to make either one look like the better buy, but with the election crash last fall it's really more a matter of where you got in. You're also talking about two very different sized firms.<br /><br />Of course none of that matters as CONSUMERS as long as both are in business because stock price doesn't affect how well the product works. The iPhone was most certainly disruptive technology that changed the game. The Pre is an equally excellent piece of hardware and webOS is a game changer (if not as disruptive due to Palm's smaller footprint).<br /><br />For me the keyboard, intuitive software, and open platform were enough to leave AT&#38;T for Sprint (which is borderline desperate for customers right now). I don't expect it to have the reach of the iPhone, but I also don't care because I use my phone, not a hundred or a thousand other people's.<br /><br />Cheering on a company as "evidence" of your product's superiority is fanboyism at its worst. Toyota's market cap won't make your drive any less snooze inducing if you choose a Camry-appliance over a Corvette, and GM's seizure by the government doesn't take away from what a lean machine your Vette is.

[pdditty]

I think Verizon tries its best not to have a killer lineup of phones.

[calculatorwatch]

haha it's like they really are trying to suck<br /><br />verizon seriously needs a reality check, everyone knows they have ****** phones, they were idiots not take the iphone offer, and now one of the few phones that can truly compete with the iphone and they won't sell it because it has a better app store than their sure-to-be-grossly-overpriced one<br /><br />personally i was probably going to get the motorola sholes anyway but the pre was my backup in case verizon really screwed it up, which unfortunately looks more likely now since their reasoning on the pre means verizon will probably remove (and possibly block) the android app store on the phone<br /><br />i 'm also really disappointed for palm, they're a great company and came out with a great phone and if this happens it will be a huge blow to their potential sales

[PeteyBrian]

The FCC needs to break up monopolistic practices like exclusive agreements. How in the world can a telephone company executive look congress in the face and say that these agreements are better for consumers... perhaps for a couple of consumers!

[eadrian75]

Completely agree!!! Verizon has the worst selection of phones. I have been with V for the last 4 years and have enjoyed the quality of their network. Unfortunately for Verizon the days of the razor are over. I want more than just being able to talk. A shift is taking place in this market and its picking up momentum in the direction of the smart phone. I have to say that V's phone selection is dumb.<br /><br />My contract has expired with V and I'm ready to jump ship. My target is Sprint; their unlimited plan is hard to beat. I'm on the fence between the Pre and Hero. I'm tired of their Black Berries and wanna be "smart" phone selection.

[Donniebrasco]

I agree. I bought an Omnia in December because I was afraid to leave Verizon. I would have considered an iPhone if AT&#38;T didn't seem atrocious with coverage. I also considered Sprint, their company HQ is about 20 minutes from where I live, so I figure the coverage should at least be good here. Their unlimited plan does look good. <br /> <br />The GPS fiasco with the Omnia really rubbed me the wrong way. The Omnia shipped with a GPS in it, but VZW disabled it. When I bought my phone in December, word was that an unlock was coming Q1 2009. The Verizon Store rep confirmed this as well. The fix didn't come until last month. <br /> <br />Unless they have something real good to offer when it comes time to switch, I might be jumping ship. I've been hearing less horror stories about AT&#38;T around the DC Metro area, so maybe an iPhone may be the ticket if it finally gets flash support. My Omnia does have flash support, which I really like.

[SX10 IS]

What about the LG enV Touch?

[Renegade Knight]

Yet another reason Phones should be sold by their makers and plug into any network. Let Verizon etc. compete on service.

[myles taylor]

Yea we would do that. A lot of countries do actually. However, you have to pay the full price for the phone then and that's a lot of money upfront. You get more freedom but you pay for it with cold, hard cash.

[dylerl]

Yes they should be sold by their makers and plug into any network, we cant do this until all the good providers are on LTE though right now. Also this is the same reason that the Iphone will never come to Verizon as Verizon wants so much control over their phones.!!!

[mauldlouie]

This is why I left Verizon. They don't have the phones I want. I left them 2 years ago to get the Mogul from Sprint since Verizon was dragging their heels releasing their version of it. Now I have the Palm Pre, which I love and I sure hope it doesn't become roadkill under the iPhone juggernaut. I like it better than the iPhone.

[gefitz]

I didn't want the Palm Pre anyway...I was afraid that creepy red-headed cloud-dwelling woman in their commercials would start popping up in odd places in my life.

[YoungAndRestless]

Ha ha ha haaa!! <br /> <br />Actually, I quiet like the red-headed woman....

[bmyrum]

I think verizon is doing the best job to have its customers hate their phones. I am on Verizon and am waiting for the Pre. I want an iPhone but HATE AT&#38;T aka The Death Star. If I could get a cool and GOOD phone on Verizon then maybe this fantastic service would be worth the price I'm paying for it.<br /><br />Verizon, get you act together. Otherwise I might have to go back to The Death Star or worse Sprint (which has absolutely NO CUSTOMER SERVICE at all).

[SixString16]

At least Sprint has a good network for data. It does work in more places than AT&#38;T's service too. Verizon's problem is that they don't realize that they should just be a pipe for these devices. The VCast service and app store really doesn't look like a great revenue generator. Also, the crappy selection of phones scares people away that would otherwise go to Verizon. <br /> <br />A network that beats the pants off of all the other carriers is what people are looking for. If you can build the most robust, dependable wireless network for voice and data, that alone will have people knocking on your door. <br /> <br />I hope they wake up soon because if they get an Android device and completely castrate it, I'm going to Sprint for an Android phone. I love the iPhone, but I've had AT&#38;T in the past and will not go back to them as their coverage in the NYC area is not dependable.

[DaVoAxiom]

I think you are going to find that Sprint's customer service is vastly improved. Do some research and you will find that their network is out preforming both AT&#38;T and Verizon. Add to that the fact that Sprints plans are cheaper. I have to say that anyone who stays with Verizon must love low grade phones and paying too much for their service.

[biggben]

Note to Verizon: Did you ever think that the sales of Pre are low because people are waiting for it to come to Verizon?

[Tergon]

Please Take this Note Palm !!!!! There are many Loyal Verizon Users waiting for this phone @Mytreo.net and PreCentral/TreoCentral The Pre was just released and it's users love it (built in fanbase already) slow sales are due to Sprint, and not Palm and with the O2 Pres emerging and the (Canadain) Bell Pre out the device is bouncing. The for pay store goes live and there's no reason Palm shouldn't let Vcast be on it. <br /> <br />Please don't do this, I've loved my Verizon Service but I want a Palm WebOS phone and will take no other phone, so it's you guys get it or I go with Yuck Sprint. (empty sounding threat to loose one customer but there are many who feel the same)

[kkevin6154]

I AGREE!!! THAT'S ALL I HAVE TO SAY!!

[jlvdo]

+1<br />I want a Pre. If it isn't offered by verizon, bye-bye verizon. My contract is expired, and will go to Sprint if Pre not offered in January. Period.

[AppleSuxLeo]

ANDROID phone would be better , moe flexible.

[the_mrwhite]

Yeah, because the sale of those phones are doing so well. /sarcasm

[mibollma]

exactly<br />android sales reached several millions already worldwide and the really nice phones are not even released

[Mergatroid Mania]

What a dumb company. The best new phone to come out in years, and they don't want to carry it.<br /><br />I just purchased a smart phone this summer. If the Palm Pre was available at the time I would have gotten it for sure, even though it would have meant I would have had to switch carriers to Bell.<br /><br />What's with the FCC and CRTC? Enough of these exclusive deals. I want to buy a phone and use it on any network I like. This model of business is insane.<br /><br />As it is, if my carrier (Telus) starts selling the Palm Pre, I will trade in my current smart phone and get the pre, even if it means I have to pay another hundred bucks to do it. All the reviews I've read on the Pre are gushing. I'd love to get my hands on it.<br /><br />Here's another problem with current business models. Why should a phone purchaser be restricted to one app store? What happened to the capitalist model where competition breeds choice?

[the_mrwhite]

Like to see these reviews where they are gushing, I read tech stuff everyday and haven't seen anything of the like. Nice try though.

[DrtyDogg]

http://gizmodo.com/5126702/palm-pre-preview-simply-amazing <br /> <br />http://techblips.dailyradar.com/story/review-palm-pre-review-electronista/ <br /> <br />http://www.pcworld.com/article/156785/palms_pre_getting_good_reviews_so_far.html <br /> <br />that's the top three from a search of "Palm Pre Review," If you haven't read a good review of the Pre it is because you don't want to. Nice try though.

[darthstupid]

And with that announcement Palm just effectively went bankrupt.

[DMAN3k]

Looks like Sprint killed the Palm Pre by forcing people to upgrade their plans to an Everything plan.<br /><br />Dumb Sprint.

[vgsantiago]

I originally balked at getting the Pre because of Sprint forcing customers to upgrade their plan. But since they've added Anytime mobile which I think was a move to get people to upgrade to the data plan and will consequently upgrade their phones. In the end I think a good move. Will be getting my Pre when the my plan changes next billing cycle.

[0wnz]

Yea try running a data-intensive phone like the Pre (or Iphone or anything Android) without a comprehensive data plan and lets see how fast your monthly bill breaks 4 digits. Compared to At&#38;t's Iphone plan, the 450 Everything plan on Sprint is cheap, and Verizon just nickle and dimes you for every little service (navigation, visual voicemail, etc). I've been a Sprint customer for a year and a half, I love the service and, although customer service may suck, I haven't had a reason to call them. The only problem's been my POS Instinct which freezes enough to keep a sixpack cold. Can't wait for the Hero.

[rdean]

I've been a Sprint customer for years, mainly because, for the right plan for my family, the other providers can't compete on price. I haven't been particularly happy about it, because they had crappy coverage and crappy customer service.<br /><br />Since Hesse has taken over as CEO, the situation has improved. The coverage has gotten a lot better, and they're treating me *much* better as a customer. I think the only thing I worry about is whether they can turn the company around before they've bled too many subscribers to survive.<br /><br />I think the Pre is an excellent phone. I like the iPhone, too, but AT&#38;T's plan with the same features would be $35+ more per month.

[DrtyDogg]

You would pay through the nose if you didn't have an everything data plan with this phone.

[bimmin]

Come over to Sprint.

[1812dave]

The Pre sucks anyway. Who cares if it doesn't make it to Verizon. The screen is too small, the fonts aren't adjustable, no voice dialing, poor build quality. Who needs a Pre???

[vgsantiago]

Of the four things mentioned, 2 can added via updates (font adjustments &#38; voice dialing). the first and last are opinions. <br /> <br />In the end not bad for a first generation phone. I think Palm is gathering what people don't like about this phone and hopefully a second generation will be muched improved. I think if the pullout keyboard was done (may I say) in landscape mode vice portrait and\or with better buttons it would quiet most of the criticism it takes.

[junkieforsale]

People complain about ATT but Verizon, while it has a good network, has for a long time had the weakest selection of devices. They think they should cripple, delay, redesign phones when really they just end-up giving customers a bad experience. I can't tell how many times over the 10 years I was a customer I walked into a Verizon store trying to find a decent phone. Glad not to have to deal with that anymore.

[the_mrwhite]

Palm has all kinds of trouble here in the last couple of months, lets run them shall we: <br /> <br />1. Sales are dismal, (like thats a shocker) <br />2. USB-IF hands Palmd them tehir own ***** by rejecting their claim with iTunes sync <br />3. and now this. <br /> <br />Said it before and I'll keep saying it, Pre = failure. bye bye Palm.

[DaVoAxiom]

500.000 in a little under 4 months is Dismal? <br /><br />The iTunes sync doesn't really effect the uses of the device and in fact was nothing more than one of many ways to get music on to the phone. <br /><br />I think in the end this might be a win for Sprint and other US Carriers. There has been a number of Verizon customers waiting for the Pre. Now that it isn't coming to the V, they are going to start jumping ship to Sprint, At&#38;t, etc...

[Ray180]

I agree, DaVoAxiom. All this news does is make it more likely I'll ditch Verizon and go to Sprint once my contract is up in a couple months. I'm tired of Verizon snubbing the cutting edge OS's just so they can keep their system locked down and save their overpriced Vcrap services -- they could at least give us an Android phone for crying out loud. There's no exclusivity agreements blocking that. <br /> <br /> I think people who slam Sprint for bad coverage or customer service are living in the past. Times have changed and Sprint has improved. And NO ONE offers better value in their service plans.

[justinxtreme]

Palm Pre well awesome for not going with Verizon Wireless <br /><br />VZ always gets the crappy phones (Take a look closely at their crappy LG phones)<br /><br />But I wish the Palm Pre was on T-Mobile if it was people will really buy it...

[MDR52]

with Tmo are you kidding? Don't get me wrong they are a decent company and i have been with them on and off since 1997 before they were even tmo but their 3g is a joke... im leaving them in 15 days for sprint Hero and or Pre. I was pretty happy with Sprint back in the day when everyone said they sucked... I had no problems with coverage or customer service. The fact that Tmo cant get UMA working on 3G phones and cant seem to get on board with 3G in the US while others are moving to 4G is getting pretty sad.

[lvcsslacker]

too much phone for them, I see...

[abcd9009]

"Another issue is that Verizon supposedly wants its VCast application and download store to be featured on the phone. But this will compete directly with Palm's own app store."<br /><br />So does that mean the iPhone is also NOT an option for Verizon because the App Store will not only compete with VCast app... NOBODY would ever go to VCast applications once they go to the App Store.

[frozenjello]

I think you hit the nail on the head. Because of Verizon's moronic requirements, the iPhone won't come to Verizon until both AT&#38;T and Verizon switch to LTE networks and someone unlocks their AT&#38;T "4G iPhone" to work on Verizon. This will be years from now, and the new 4G coverage will suck as compared to the mature 3G network, kind of defeating the purpose to switching to Verizon.

[Donniebrasco]

Seriously, does anyone use VCast now? I don't even think I clicked the icon to have it self-install itself on my WinMo phone.

[preloverbuthasverizon]

maaan cmon verizon stop being scared and just add the pre already cmon now<br />i really want this phone

[rhemler220]

Verizon won't give you what you want, they'll give you what they want, Crappy phones that compress data so much that the youtube videos look like an explosive abstract painting. Believe it or not I actually had more dropped calls with verizon on my storm than my 3GS. And while I'm at it I loved how Verizon's customer service was so nice, but stupid. They had no idea what was what when I tried to have a problem fixed on my storm. I called a verizon blackberry support telling them that when I hold down the menu button and the running programs show up, it won't allow me to open them from that taskbar. The verizon rep told me she had no Idea there was a task bar and did not know thats what happened if you help down the menu button. She then proceeded to tell me that what ever third party app I downloaded "taskbar, a basic function on the storm" has caused some type of crash and wanted me to wipe my phone. I hung up.