Palm Pixi to suffer the same fate as the RAZR?
From a few months ago (but the price is still the same), Palm Pixi one step closer to free, now $25 on Amazon.
Let me first say that I don’t know what profit agreement Palm and Sprint have for Pre and Pixi sales, but offering the Pixi for this low a price just smells like the Motorola RAZR all over again.
What I mean by this is when the RAZR rose to become the most popular clamshell phone of all time, Motorola continued to slash prices until they, as the Pixi now, started to approach zero. They had sold over 50 million RAZRs by 18 July 2006.
From Forbes, 20 February 2007:
Because Motorola has not recently had products that cellphone companies wanted to offer, it has sold tens of millions of Razrs and their offshoots by slashing prices. Margins have collapsed in the process.
I agree with John Gruber, the future of Palm depends on a genuine hit to keep the company alive, and I don’t see how slashing prices on their new models is going to help their business.