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My Profile Top News Reuters top ten news stories delivered to your inbox each day. Subscribe You are here: Home > News > Technology > Article Home Business & Finance News U.S. Politics International Technology Internet Entertainment Sports Lifestyle Oddly Enough Health Science Special Coverage Video Pictures Your View The Great Debate Blogs Weather Reader Feedback Do More With Reuters RSS Widgets Mobile Podcasts Newsletters Your View Make Reuters My Homepage Partner Services CareerBuilder Affiliate Network Professional Products Support (Customer Zone) Reuters Media Financial Products About Thomson Reuters Sprint to sell Palm Pre for $200 after rebate Tue May 19, 2009 11:02am EDT Email | Print | Share | Reprints | Single Page [-] Text [+] By Sinead Carew NEW YORK (Reuters) - Sprint Nextel Corp (S.N) said it will sell Palm Inc's (PALM.O) long-awaited Pre smartphone starting on June 6 for $199.99 with a two-year service agreement, in line with Apple Inc's (AAPL.O) iPhone price. Shares in Palm fell 5 percent as some investors were disappointed that the price would match rather than beat iPhone's price and Sprint's chief executive said on Tuesday he expects Pre shortages around the launch. Piper Jaffray analyst Michael Walkley said it was typical that a new high-profile phone would be in short supply around the launch time. But he some Palm investors were likely taking profits after shares rallied from $3.30 in January to more than $12 in anticipation of the phone. "Maybe there's a little disappointment about the launch price and the fact they're indicating that they'll have limited supply," said Walkley. Sprint's Chief Executive Dan Hesse said at an investor conference that the company was expecting to have trouble meeting initial demand for the device. "We don't intend to advertise it heavily early on because we think we are going to have shortages for a while," Hesse said according to a Thomson Reuters transcript. "We won't be able to keep up with demand for the device in the early period of time." Pre is expected to help Sprint, the exclusive U.S. provider until at least the end of the year, stem customer losses and is seen as Palm's best hope to regain smartphone market share from iPhone and Research In Motion's (RIM.TO) (RIMM.O) BlackBerry. However some analysts worry that the Pre could be upstaged by a new cheaper version of iPhone, which is expected to be announced by Apple as early as June 8. The iPhone sold by Sprint's bigger rival AT&T Inc (T.N). CL King Associates analyst Lawrence Harris said that some investors may be disappointed it will not be available sooner. "It would've been nicer if the device was out in the market for a longer period before any potential iPhone," Harris said. While Pre may stop existing customers of Sprint and Palm from switching to rival phones and service, it would be unlikely to lure away users of iPhone or BlackBerry, he said. "Its going to sell principally into the base, to existing Palm owners and existing Sprint subscribers," Harris said, without giving a specific sales target. The Pre has touch screen controls as well as a keyboard that slides out from under the phone. It will run on Sprint's 3G network and feature personal and professional calendars, e-mail, and contact lists, the company said. Sprint shares were up 10 cents at $5.42 in morning trade on NYSE. Palm shares were down 6 percent on Nasdaq at $11.36 after falling as much as 8 percent earlier in the session. Palm shares have risen from a low of $3.30 before it announced Pre at the January Consumer Electronics Show, where it was the most talked about device at the show. (Reporting by Ritsuko Ando and Sinead Carew; Editing by Derek Caney) © Thomson Reuters 2009 All rights reserved Share: Del.icio.us Digg Mixx Yahoo! 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Slideshow Most Popular on Reuters Articles Video U.S. health officials troubled by new flu pattern FEATURE-Blue collar U.S. males lose more ground Lars von Trier film "Antichrist" shocks Cannes Man tried to hire prostitute for his son, 14 Lambert and Allen to sing for "American Idol" crown Blue collar males lose more ground GM bankruptcy seen as all but inevitable Obama says he wants progress with Iran by year's end Sri Lanka confirms Tamil Tiger leader is dead | Video Credit card backlash bill comes due in Senate Most Popular Articles RSS Feed Video Obama calls for two state solution Sri Lanka claims war victory Gun conventioneers wary of DC Obama urges fair debate on abortion Geithner: Economy has stabilized NYC Mayor addresses swine flu death Global Tamil protests over defeat China bridge collapse Talk of the Town Thousands protest for Suu Kyi Most Popular Videos RSS Feed We want to hear from you Join the Reuters Consumer Insight Panel and help us get to know you better Please take a moment to complete our survey Reuters.com: Help and Contact Us | Advertise With Us | Mobile | Newsletters | RSS | Interactive TV | Labs | Archive | Site Index | Video Index Thomson Reuters Corporate: Copyright | Disclaimer | Privacy | Professional Products | Professional Products Support | About Thomson Reuters | Careers International Editions: Africa | Arabic | Argentina | Brazil | Canada | China | France | Germany | India | Italy | Japan | Latin America | Mexico | Russia | Spain | United Kingdom | United States Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. 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