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Sprint, Palm drop after analyst report on Pre sales

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Shares of both Sprint Nextel and Palm fell yesterday after a report by an analyst at Wachovia Securities indicated the Palm Pre was doing little to attract new customers to Sprint.

The report, by Wachovia analyst Jennifer Fritzsche, concluded after a survey of retail outlets that most Pre buyers are existing Sprint subscribers. Fritzsche suggested that, at least so far, the Pre was not peeling off subscribers from other carriers such as AT&T Mobility and Verizon Wireless.

Sprint stock fell 33 cents, or 6.1 percent, to $5.11 per share yesterday at the close of trading--its biggest drop since May 13. Palm stock fell 68 cents, or 4.7 percent, to $13.67 per share at the close yesterday. This morning, Sprint stock was trading up 7 cents to $5.18 per share, while Palm was down 30 cents per share to $13.37.

Sprint has lost more than 4 million postpaid subscribers over the past year and is hoping the Pre will help at least stop the defections. Palm, meanwhile, has been rumored of late to be a possible acquisition target.

For more:
- see this Bloomberg News article

Related Articles:
Analysts ponder: Will Palm be acquired?

Sprint breaks sales records, looks to keep Pre momentum going
Palm Pre goes on sale amid lines, tight supply
Hesse: Pre launch is 'coming-out party' for Sprint
Review roundup: Palm Pre

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Rollin in the floor and laughing my azz off!!!

I bet the losers at Sprint didn't sell 500 units of the Pre. Just like the EndStink that didn't sell. Who wants to be on Sprint's network and have deal with their Customer Care and imbecile management?

Millions more Sprint subs will bolt in 2Q09.

Friends don't let friends use Sprint wireless...

Someone shoot the idiot above and put him out of his misery. While you're at it, take out a few other ifanatics and make the world a better place.

Amen.

I would bet that the palm pre sold out at almost every store across the nation. They did not have enough palm pres to give away at all of the stores near where I live on opening day. So, yes they did sale more than 50 units and Sprint has improved their customer service within the past 6 months to a year and is continuing to improve. So, hold off on the Sprint bashing. I do not work for Sprint but I have had their service for 8 years.

Sprint is great. I love their wireless service. However the handsets are not what is going to save them. People are not impressed with super model handsets anymore. They're a dime a dozen.

Sprint has got to make it easier to do business with them by simplifying their pricing, service packages, and customer service, and getting rid of most of the directors, VPs, and department heads. There is a heavy old boy/girl network there. The last round of layoffs did nothing but get rid of individual contributors, as the directors and VPs jobs that were eliminated were simply rotated to other jobs in the company.

And they should have never merged with Nextel. Iden is a great product with a place in the market, but the two just don't mix well. I'm sure both company employee bases agree.

I have been with Sprint for 8 years and stay because we get a corporate discount that can't be beat. That said, I went to a Sprint store two days ago and was treated like a moron. I hate the policy of "loyal customers" getting a worse deal than new customers. If you want to have good customer service, give your loyal customers a real deal when it comes to buying new phones.

well said. too little too late just sprint away.

"Someone shoot the idiot"?? Tell me doesn't that make you an idiot for even mentioning something as lo class trailer park status as "shooting someone"... and the "idiot" has a very valid point. sprint sucks! I had them for a year and will never go back, after they sent me 40 of the wrong phones when me and the wife only ordered 2 of them. contact with the customer service was horrible!! and in the end they tried to stick us with a 4000.00 bill in the end.. so no sir you are the idiot for sticking with such a company that has such low class standards. so if you like company's that like NOT making the "paying" customer happy "like we have gotten from company's like At&t and T-mobile," then stick with them and keep your uneducated mouth closed to others.

Sprint wireless is great. I've been with them for 12+ years. No argument that their customer service stinks but I rarely interact with them anyway. All of my iPhone friends agree that the worst thing about the iPhone is AT&T hands down.

I got the Pre and I think it's an awesome phone. Verizon will get the Pre within a year.

New customers account for 35% of the Palm Pre's sold, how is that not helping Sprint?!? These so-called analyst must have some stake in Apple.

Yeah, give Sprint chance. It smart workers.

Let the analysts talk... If you believe in them, buy their stock and watch it sky rocket when they announce there Q2 numbers at the end of the month. That's putting your money where your mouth is.

The pre is too expensive.

According to an April NYT piece, "over 40%" of new iPhone applications were new customers to AT&T. By the same standard used in this article, we can say that "Most new iPhone applications are by existing AT&T customers." Does that mean that the iPhone was a failure? It doesn't mean anything unless it's compared to how other handsets perform.

I have Sprint and have been happy with them. I have been waiting for the Pre since I heard about it. I went to the local Best Buy the morning it was released and found about 10 people in line. I was number 6. My friend was number 5. The store had 4 Pre's. 5 days after the release the store recieved a whole 1 more Pre. Here it is going on 13 days after launch and I still don't have a Pre. After talking to the rep at Best buy today it sounds like all the metro Detroit stores have only recieved around 5 phones. Palm rushed the release date with not nearly enough stock and now they seem to be unable to produce even a small amount of product. They are costing Sprint alot of new customers as people are going to buy the iphone since Apple will have enough on hand. By the time Palm gets enough stock Verizon will be offering it (if Palm survives that long after this mess). So much for Sprint. lol

The value of the smartphone is in the apps that run on it these days. Apple has such a huge lead with the app store that challenging them requires something pretty remarkable. The Pre is inthe ballpark in terms of handset, but it is ugly and definitely is no where near remarkle. Its just not going to attract consumers with only 12 apps. Palm's best strategy would be to try and rebuild it's base as the "discount" iphone by dropping the price to $79 or less. A wide user base will attract developers to their app store and give Palm a shot at getting g back into the game. Heck, they probably should try to get Sprint to offer Pre as the defacto free phone for new customers.

I heard the Pre was being released on Sprint's network just to get the bugs worked out. Then Palm will have a major launch on Verizon's network and will sell millions.

Sprint, the worst wireless carrier with the highest paid executives and the most outsourced and insourced contractors. Wonder why they are the worst carrier????

I too have been with Sprint for a long time. I have my phone, as well as my wife's phone on their plan, for several years we enjoyed it. BUT... our current plan, which has data and text etc. is not good enough for the Pre. Rather than sell us the new Pre's, Sprint wants us to change plans. Something not right about forcing a plan down your "valued customers" throat.

We too were treated poorly in the Sprint store and when we called Sprint telesales. We are buying the new iPhone's next week. I'd rather pay a little more (or less in this case) and go to a service that does not participate in less than ethical practices.

I too have been with Sprint for a long time. I have my phone, as well as my wife's phone on their plan, for several years we enjoyed it. BUT... our current plan, which has data and text etc. is not good enough for the Pre. Rather than sell us the new Pre's, Sprint wants us to change plans. Something not right about forcing a plan down your "valued customers" throat.

We too were treated poorly in the Sprint store and when we called Sprint telesales. We are buying the new iPhone's next week. I'd rather pay a little more (or less in this case) and go to a service that does not participate in less than ethical practices.

S stands for Slow on the iphone 3gs.
Palm Pre spanks the iphone in real world tests of web browsing and emailing pictures.
google the following:
cnet speed-test-apple-iphone-3g-vs-palm-pre

It's amazing how one analyst at one firm can make one statement and it causes people to make decisions and statments that we probably shouldn't. Whatever happened to getting all the facts or hearing the same information from multiple sources.

I have been on the Sprint network for 9+ years and have had for the most part excellent service. There will be some each way on any service.
So tell me how much are AT&T and Verizon spending on bloggers and reporters to slam Sprint and Palm. It is a know fact that they will do illegal things to get what they want. They basically steal from the American public. They out and out lie to get what they want. Rather than do what’s right they would rather spend the bucks to pay someone off to get what they want. What was AT&Ts and Verizons pay off for doing the illegal wiretaps? How do they get away with not fulfilling commitments they make for mergers? Now former chairman of AT&T is appointed to head GM??? Just what qualifies him for that? Last time I looked my car looked nothing like a phone.
Isn’t it interesting that there is always numerous comments about Sprint being bad. When reading blogs I have seen many commenting about AT&T having lousy service. Even the iPhone fans are stating that, now that they are not getting a reduced upgrade as they did last time with the 3G. Even the head of AT&T commented on it. Speaking at the All Things Digital conference, The Wall Street Journal reported that AT&T chief Randall Stephenson spent much of his time addressing complaints that AT&T was ill-equipped to handle network demands posed by the iPhone. "I feel like we are closing the gap on this, but we're not there yet," he said. "We are about to see these issues manifest themselves industry-wide." So would at&t be able to handle additional influx of additional web enabled phones? Maybe if they actually spent the dollars promised to upgrade their network and spent less on political and paid blogging spending, they would not be in that position. Maybe Lou Dobbs has it right, USA has the best government money can BUY.

Yep, I've had Sprint for 8 years as well and I couldn't be happier. Their customer service has been excellent for the past 6 years (first two years were a little shaky).

It only cost me $105/month for my husband and I to have an excellent plan with the Pre. If we went to AT&T, it would cost us about $160/month for the same service. So who's laughing now. You iphone people are paying out the nose and in this economy, who can afford that. I'm saving $1320 over the course of two years to stay with Sprint. That means, I can buy a brand new Macbook ever two years with an extra $320 to spare with the tons of money I am saving by staying with Sprint.

My favorite thing in life is when someone who owns an iPhone is complaing about how they can't afford to do anything. Ha! No joke. You are paying a fortune for that gadget in your hand so cry me a handfull.

Oh, and God forbid you lose that thing or the screen breaks. Then you are really hurting.

Not to mention that Wachovia Securities doesn't even exist anymore. It's Wells Fargo Advisers now.

indeed - seemed like the whole point of the aritcle was to pump up the impact that "Wachovia Securities" has on the market. Are you kidding me?

Fact: Sprints custoer service used to suck. Fact the fired their ceo and got a new one (Hesse). Fact: Since hesse's involvement the cusotmer care has improved DRAMATICALLY. Sprint just one and independent surevey stating that they have the best 3g coverage out of all the carriers. Go to at&t for a iphone so you can play twice as much a year for service no where near as good.

Wachovia? The same analysts who said that selling subprime mortgages to people who couldn't pay would result in record profits?

Alrighty then!

it's funny how people call the pre "unremarkable" I am pretty sure none of these people have had little to no hands on time with the phone. Let's put it this way the i phone is the best gadget/toy phone and the pre is the best business phone. There have been plenty of valid reviews that have said this. I like the i phone but i like the pre better. Cause I work for sprint! Punks!

"Punks!"

Typical Sprint store employee behavior.

Sprint phones and their network are superior, no doubt. But it's the store employees that put me off. I'd rather call the customer service line or go to Sprint.com.

Go into the Sprint store and tell those workers to get off the Sprint gravey train. They are wrecking this company!

How much time do some of these people spend calling customer care? I don't think any carrier would want that biz...between web and the Palm PRe having 99000+ features...why call customer care? I went from AT&T to Sprint becuase with AT&T people always asked me i had my window down - the call quality simply sucks. I had verizon but i think i was paying for those nice ads with my very expensive calling plan. Then there is Sprint - went with a Palm Pre - fast network - excellent call quality - and at the end of the day - I don't think i called any of the 3 carriers customer care. I'm still trying to figure out who makes a decision on a device based on customer care??? The SMARTPHONE does everything...I guess i could call customer care to complain about something but who has time for that - simpy go to sprint.com and click on chat and someone will be on to let you complain. So Verizon has nice commericals and expensive service - AT&T sounds like you're swimming and the Iphone is slow as dial up...T-Mobile - ???

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