Saturday, December 22, 2007

The Trouble with Treos

Palm Down, Centro Way Up, Treo On The Mend | Treonauts

I've inadvertently become part of a market trend.

Back in 1999, I won a Palm V pda as a door prize at a legal tech show.  The metal and glass pda had little power, a black and white screen, and no expandable memory.  But it was incredibly efficient and easy to use.  A single charge to its battery would last it weeks.  I found the alarms I could set as reminders for events to be indispensable.  I became a Palm fan.

Simultaneously, I've been a Verizon cell customer ever since the mid-90's.  So long as Verizon continues to rate highest in customer satisfaction, I wasn't about to give that up.

As time went on, I replaced the Palm V with a Palm Tungsten E, with its color screen, SD memory card slot, and video-playing capability.  But what I really wanted was a smartphone -- a combination pda and cellphone.  When Verizon finally adopted the PalmTreo 600, I snapped it up.  It was nifty, and I enjoyed accessing the Internet and work e-mail on my pda.  But it had a terrible battery capacity -- particularly when compared to my old Palm V.  A single charge would barely last it a day (less, with heavy use).  Eventually, last year, the 600 got fried in a Radio Shack related accident; and my phone insurance bought me a 650.  The 650 had far better battery life, a clearer screen, and a nicer camera.

Still, I began to desire the Treo 755p -- the new generation Treo Palm introduced at the beginning of this year.  It was smaller, lighter, and more streamlined.  It had a brighter screen, broadband Internet capabilities, and  the ability to play streaming video from the Internet. 

The problem was that the 755 was only available from Sprint.  Rumors pegged Verizon (which, like Sprint, has a CDMA network) as getting the 755p in mid-summer.  Then September.  Then November.

I grew disappointed with the constant rumors of the Verizon 755p.  Apparently, I wasn't the only one.  The problem, purportedly, was that Palm kept submitting 755p models made for Verizon to the carrier; and Verizon, which has high standards in phones, kept rejecting them.

The alleged result:  While Palm had a $12.77 million profit in the first quarter, it took a loss of $9.6 million in the second quarter.  This was despite an 11 percent increase in its smartphone sales.  According to the Treonauts blog, the increase was due to sales of the latest Palm smartphone to hit Sprint:  the tiny Centro, which sells under a Palm imprint rather than a Treo one.  The loss, according to the blog, "was blamed on the late arrival of the Verizon Treo 755p which began shipping after the end of Palm’s quarter as well as warranty costs of older legacy products."  Palm's stock sunk, and it layed off a bunch of folks.

But Monday, Palm finally unveiled the Verizon Treo 755p.  I immediately ordered one (I was eligible for an upgrade discount from Verizon), and it arrived today.  Whether this device can lift Palm from its sales funk remains to be seen.  What also remains to be seen is Palm's fate if the Apple iPhone becomes available from carriers other than AT& T -- like Verizon.Tr

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