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June 02, 2008

Palm's smartphone market share jumps nearly 70%

Palm_logoAt the risk of beating a dead horse, let this news make its way to mini-notebook companies: low price does matter. How else could you explain Palm's market-share of the smartphone market jumping around 70% in Q108? The handset maker captured 13.4% of the market in the first quarter of the year, which compares to 7.9% at the end of 2007. The $99 or less Palm Cento is the poster-child for a low-cost, yet fairly functional device, just like the original Eee PC was. While the Centro might not meet the needs of seasoned, mobile device owners, it's definitely a device that helps bridge the gap for consumers between feature phones and full-featured smartphones. Plus it buys Palm more time to bust out that Palm OS 2.0, Nova or whatever it might be. ;)

By the way: RIM also gained market share, jumping from 35.1% to 44.5%. The loser in all this? Apple's iPhone went from 26.7% to 19.2%.

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Comments

Hey, Kevin, just curious why you say the Centro doesn't meet the needs of "seasoned, mobile device owners" -- it does everything a Treo does, just in a smaller package. And by the informal counting at airport gates, there are a lot of seasoned, mobile device owners out there still getting a lot out of Treos.

Subtle, but important choice of words Craig. I consciously said "might not meet the needs", not "doesn't meet the needs". For some folks, S60 or Windows Mobile devices are preferred for smartphones. I'm not arguing for or against any platform because I believe it's a personal choice to use the right tool for your task. I too see many Treos and I'm not trying to slight their owners.

I am still using my Treo 700p... and I can run all kinds of cool apps today (don't have to wait until Uncle Steve allows me to...).

As for "price matters"... well, doh! If they dropped it another $50, their market share would probably go up even further. Unfortunately there is another thing that matters... profit :)

>>>fairly functional

There's an overstatement.

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