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Palm seems to be taking a new approach with their latest mobile phone. Instead of launching the Palm Pixi as a major contender in the Smartphone industry, it is being marketed as a downsized version of the highly popular Palm Pre released just last month. We all know that this have been done in the past by other manufacturers. After launching a cutting edge mobile phone, they follow it up with a smaller and cheaper device that is closely associated to the main product.
It becomes an option for the entry to mid level markets as these “mini” models become more affordable. How the public will react to this latest strategy employed by Palm, we are not sure. However, here are our two cents on what Palm should keep in mind if they want the Pixi to flourish in the market.
All About Timing
It would be foolish for Palm to wait 6 months or so before they launch the Pixi simply because it wouldn’t have an impact at all by then. 6 months from now, we don’t see consumers getting all excited about a new device that happens to be a downsized edition of a Smartphone that was launched half a year ago. In our opinion, Palm should release the Pixi as soon as possible in order for it to be successful in the market.
Because of the fact that the Pre was only launched last month, consumers are still keyed up about it as they are presented with yet another “iPhone killer.” If Palm is able to launch the Pixi in time, it will be able to ride the Pre wave and be able to capture the consumer that wants to get his hands on the Pre, but doesn’t have the budget to do so.
The Power of Pricing
Continuing on the same line of thought, we believe that in order for the Pixi to become a hit, Palm will need to find the right price that will match what the Pixi will offer. Right now, network providers offer the Pre for around £50 for higher tariffs, and around double for lower monthly subscription fees. However, if you were to purchase this handset on pay-as-you-go, you’re going to need to shell out more than £300. Once the Pixi is released, we’re thinking it should be made available for free on certain tariffs, or perhaps for £20 or £30.
Anything over this price range may not be worth paying for as you could probably get a better Smartphone from another manufacturer at the same price. As for pay-as-you-go subscribers, rumour has it that the Pixi will be retailing at a little less than £300. We think this is pushing the envelope a bit too much. £200 - £220 sound just about right.
Marketing Matters
Which marketing techniques Palm will employ will also be a relevant determinant in either the success or failure of the Palm Pixi. Right now, they’ve already started with their intention to capture a younger market by announcing the Pixi Artist Series. This special line of Pixi mobiles will come in 5 different designs that are far less professional and conservative. They bear loud and flamboyant designs – from snake skins to skull caps – that will be a hit for the young and the young at heart.
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