Monday, October 16, 2006

New Treo 680 - Finally Loses the Antenna!

Palm is about to roll out a new Treo (the 4th new model this year), The Treo 680, that finally loses that annoying stub of an antenna! Check this photo out... it's not cut off at the top - the stub is gone and from an esthetics perspective, I think this phone just elevated to an entirely different level!

Supposedly the 680 will sell for a mere $199... so something must be missing, besides the antenna. You don't cut the price of your new phone by close to 50% unless you cut something else too - at minimum your margin! Maybe the 680 is tasked with creating so much volume that the retail price cut won't make a difference? That's exactly the plan... Palm is cutting costs in its operations to make up for the diminished revenue. Palm plans to use two Chinese manufacturing companies to produce Treo models hoping to negotiate better deals on production costs.

Creating a Treo that targets the consumer market rather than the business market is a smart move too, considering the fact that the business market for smart phones is only 25% of the total non-business market. Palm is relying on the "we'll make it up in volume" strategy.

Lose the stubby antenna and make the body of the phone some cool colors and show teenagers how they can get their email on their phone... WINNING COMBINATION.

Palm needs the boost too since their stock is down more than 30% since April and since it won't take long for Palms original market, hand-held organizers will be totally dead. I don't know of one forward thinking individual who is buying a PDA and a mobile phone. It just doesn't make sense.

I think this phone is a winner and it might be my next purchase - lookout BlackBerry.

TK

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