My take on the Pre – Palm’s salvation.

Ok, the reviews have been rolling out in force for Palm’s launch of the Pre and WebOS manana. They’ve all been quite positive – glowing at times. Significantly better, if memory serves, than any RIM or Android launch I’ve read about. On par, really with reviews of new iPhones.

This is satisfying – I’ve long been a Palm supporter – they lost me for a little while with their years long blatant refusal to do literally anything. (And technically, they continue to lose me – because I’m going to be getting the new iPhone and not a new Pre – but that’s only a sure thing because I dislike that damn slider, I think history’s going to show that no mainstream hit will ever have been a slider.) What I’ve seen and read about the Pre, though – renews my faith. Palm has always had a great vision for smartphones – hell that their Treo, essentially unchanged over the course of 5 years, was still the best general purpose smartphone out there before the iPhone hit. When my first 650 died, the only option was to buy a new one – WinCE? RIM? Forget it. The Palm had a touch screen, easy user interface and, yes, an app store (palmgear.com) that had thousands upon thousands of apps – including no shortage of games. And that was years ago. So, I’m just saying, hate Palm or whatever, they knew smartphones.

The Main Issues I’ve Read

Assuming that the reviewers haven’t all lost their mind, I believe that WebOS has saved Palm. This was their last chance and they knew it and they did it. Where the rest of the smartphone industry was targeting where the iPhone was, I think Palm went into a dark room, tried to figure out something genuinely innovative and go with that – and that’s going to be the key to success – they’re starting out with something new as their base and it’s going to be a big differentiator as they continue to evolve it. This is Apple’s real and only short term competitor – they’re the ones who are going to be pushing Apple’s iPhone OS team.

I think the major complaints I’ve seen for the phone are a sparse App Catalog, battery life and maybe build quality. App Catalog quantity out the gate isn’t an important factor. As long as it works well and easily – as I believe that the platform is going to do well, the developers will come. Especially since easy apps are super easy given the web based development model – as compared to quite a high barrier to entry of learning Objective-C – something no one outside of the (at least previously) small MacOS development world.

Battery life. LOL. Seriously, when do people not complain about this? The iPhone? Battery life! Non-replaceable battery! The sky is falling! Same with the G1! Oh NOES! Seriously folks, everything I’ve read shows that with heavy usage this will make it through the day, that’s roughly the battery life of any current, good smartphone. Maybe it’s less than the iPhone, but you’ve got replaceable batteries so you can carry a spare, not to mention the higher capacity third party batteries that already exist.

Build quality, eh. It’s a slider – outside of the Helio Ocean, which did have satisfying construction, I think they all tend to be a little plasticky. But, whatever, my guess is that this won’t be a huge factor in purchasing decisions. Hopefully, the next one will just be pure virtual keyboard. (Wait, the Pre has a virtual keyboard, right? I think it does?).

Hacking iTunes!

One super interesting move they made, which I believe was smart – although may prove otherwise – was hacking the system to sync with iTunes. In my opinion, this is critically important. Easy desktop music syncing is key and iTunes does it so well and everyone, but everyone has an iPod already. Making it easy for people to drop their iPod in favor of their smartphone is key. It will be interesting to see how Apple reacts and subsequently how Pre owners react. If they block the Pre from syncing who will the users blame, Palm or Apple? My guess is that the internet world will blame Apple, but the mainstream users will blame Palm.

Will It Fail?

Here’s one of the very few out and out – Pre will fail posts I’ve seen. His first reason is that “The Pre isn’t even as good as the current iPhone, let alone the new one.” – but I think that is an oversimplification. Remember when the iPhone came out and people started comparing it’s features to other smartphone? Man, it wasn’t even as good as them! No MMS? What? No copy and paste? This thing is dead on arrival. Yeah, turns out feature-checklist-itis isn’t a good gauge of how good a phone actually is.

The weirdest one, though has to be:

The smartphone game is rapidly becoming as much of platform game as a device game, and the Pre is nowhere as a platform. As more people buy iPhones and more apps are built for iPhones, iPhones become more valuable to their owners. This creates the network effect that Microsoft Windows users have long been familiar with. Apple is far from having a Windows-like position, but it’s getting there rapidly. And the only companies in a position to derail it right now are RIM and Google.

With no support as to why he believes that RIM and Google are the only companies that are going to be able to get the network effect? If it was the size of the company, well then WinMob should have a huge network effect, which it certainly does not. The network effect comes of having a successful platform and is unaffected by the size of the company – look at Twitter for a great example of this, or Facebook or any other networks – compare and contrast to Yahoo 360 or any of Google’s attempts (do you remember Jaiku?). It simply a silly assertion to make, developers will go where the users go – possibly even more so to WebOS since the barrier to making apps is so low – it already has a pool of developers skilled in its chosen language that is huge.

Ok, this last one is wierd too:

The smartphone game has become a waltz of elephants, and Palm is just a Jack Russell terrier. In the US, the smartphone war is between Apple, RIM, and, to a lesser extent, Google. Palm can yip a bit and run around nipping at the others’ feet, but it’s too late to become one of the big dogs.

What? Again, why is it the size of the company that matters here? It simply doesn’t make sense, why isn’t WinMob thrown in there, then? Also, why just be concerned with the US? These are just weird baseless ideas – I think he’s a smart guy, I wish he’d provide at least some reasoning behind this. The smartphone market is growing by leaps and bounds – the Pre doesn’t actually have to beat the iPhone to make a very, very viable company – it just needs a reasonable slice of that pie. In my mind the smartphone race to watch is for 2nd place and is between Android and WebOS. I personally think that RIM is reaching its zenith and in the next couple years (although they’ve proven more successful than I would have thought so far), unless something radical changes there you’ll see them gobbled up by their younger, hungrier competitors.

In the end…

Anyhow, I think the Pre is truly innovative in a space where everyone thought that Apple had the corner on the “new new” market. There’s things I want Apple to copy from the Pre – especially, *especially* that awesome touch zone next to the button. I desperately want programmable gestures so that I can do more than two things without having to go back to the launcher. It’s a brilliant solution – sorta like how Apple’s mighty mouse, while still technically one button – combines the simplicity for the new user with advanced options for those who need it (except the mighty mouse fails on the execution, where I don’t think the Pre does). I believe that the Pre is going to be the one that pushes Apple to finally enable true background processing instead of (or in addition to) their lame ass push system. I’m looking forward to this launch but even more so to see how this evolves. Do you think it’s going to save Palm? Or are they still going down?

  • @howie yeah, my mom wants one too :) I do think Palm generally has a positive association with people as well.

    In thinking about this more I actually do think that Google isn't really in competition with Apple and Palm as much as Microsoft.

    Google doesn't need one particular piece of hardware running Android to be a hit in the way that Apple and Palm, (and RIM to the extent that they go after the consumer market), do since they don't make the hardware or make money on the hardware or licensing.

    As all phones become smartphones, Android could be positioned as the choice of OS for manufacturers who are not Apple, Palm or RIM simply because it is free and modern and there. Your HTCs, LGs, etc. might just migrate to it as an enabling technology so that they can stay in the game.

    Microsoft is sort of in the same position but Windows Mobile doesn't seem to be appealing to people so much these days and comes with licensing fees attached.

    Android is going to be running on netbooks which would otherwise be running Windows.

    So maybe Android never has the same brand in-your-faceness but could quietly emerge to capture a large segment of the market.

    I wonder about Nokia. Will they continue to push Symbian? A combined Nokia and Palm would be interesting...
  • Brand power is why no one is going to unseat Apple for 1st place. But the fight for 2nd place is on. :) I believe further, that it will be much easier for Palm to develop a brand around the Pre than it will be for Google to do around Android - given that it's going to be in tons of diff't handsets with diff't capabilities, diff't makers, diff't cost and diff't quality. Palm's going to concentrate its brand in a select few well designed phones. I mean, just compare the G1 physically to the Pre. Even from pictures you can see which one is sexier.
  • howie
    my bad, looks like you did address some of that in the last post. too quick on the draw.
  • howie
    I think you guys are missing one important point in this whole discussion. You mentioned mindshare, but branding is a big part of that. Who is actually buying these things? We can go back and forth all we want about who makes the handset or the features or integration, but the truth is. My MOM wants an iphone. Everyone knows what it is and that they want one. Just like the ipod vs every other mp3 player. Everyone in corporate america wants a blackberry and RIM really knows how to build relationships with enterprise customers. But the people who really know and care about android, and WebOS, and HTC...well, we're a tiny percentage of the market. Hell, T-moble doesnt even use the name android! they are marketing "the G1 with google!"

    My point being that the make-or-break for Palm will be if it can get enough buzz so that people who are not geeks want to buy it. Its the reason android may have some difficulty. "heck, my phone already has google"

    Im really not sure what the name Palm means to people anymore. is it still a positive association? Can webOS/Pre get in enough hands to get it back there?
  • Yeah, a big reason the Mac, iPhone, etc. work so well is 'cause they are 'vertically integrated'

    I'm a little surprised actually how much brand power Palm still has. I had kind of written them off a while ago yet have relatives asking about the merits of the Pre vs. iPhone weeks ago.

    Contrast that to Android who I doubt many non-tech people are aware of at all...
  • I will believe 18-20 Android phones in the next 6 months when I see it. If there's 3 on the market, I'll be surprised. It'd be great, though. I'm super curious to see how the Android Marketplace copes with multiple handsets.

    However, on "The Microsoft Way" I have to strenuously disagree. That way has worked exactly once in history. Look what happened to Apple when it tried to go licensing - it almost collapsed the company. Or look at what happened to Palm when it tried that. Heck, look at what happened to Microsoft when it tried Plays-for-sure - it's dropped that for the Apple Way and Zune (which while not a success, is a raging success when compared to plays-for-sure). Or look at the lack of success for WinMob. Successful companies like RIM, Apple, Danger (to a degree) and even Palm of old (as well as of new :) control everything.

    But I agree with your point that Google is in a unique position with Android (and Chrome, too on the web side) to not really be too worried if Android doesn't rule the world. Although, they'd certainly like it to be in order to have a greater say in the evolution of the smartphone (and browser).

    Nevertheless, Android's committee of enemies seems like it will be ever more burdensome the more successful the product is as each member strives to cram in that which will help it the most and block that which will help it's competitors. I think '09 and '10 will see a bunch of Android phones hit the market, but I'll be curious to see if it doesn't achieve mainstream brand awareness what will happen in '11.
  • Multiple OEMs. Forgetting about the netbook thing for a minute, the fact that there are supposed to be 18-20 Android phones on the market before the end of '09 is Google taking a page out of Microsoft's playbook, (except for the open source part ;)

    There are advantages to having a really clear and controlled product line. This is "The Apple Way". There are also advantages to being ubiquitous, not worrying about the hardware so much and just the OS, "The Microsoft Way".

    I think the iPhone/Android battle may be a regurgitation of the Apple/Microsoft battle in the early days.

    Plus, I'm not sure if this is an advantage or not for Google but they are not actually trying to make any money on licensing fees since Android is open. On the one hand that sucks 'cause they won't be making money but on the other they don't care 'cause they're rich and are going at it more obliquely for mindshare or whatever...

    It doesn't really matter ultimately whether it works or not since you're not going to be using Bing or Wolfram anytime soon regardless of the phone you've got. The worst case scenario for GOOG is basically neutral.

    It might be naive but I almost believe it when Schmidt says he doesn't think they are in competition. The iPhone has actually been great for Google, after all. Pre will be great for Google. The rise of the smartphone in general is great for Google. If they can shape that future to whatever degree is possible with Android they will do it, but no matter what they win if the phone is an Internet device.

  • Yes, no one is going to unseat Apple in the foreseeable future. No one's even going to sit on the same bench. :)

    Do you really think that Android has any chance to get in the way of the iPhone juggernaut in the foreseeable future? I suppose it's because I don't see the need for netbooks in general, but I even ever more so don't see the advantage of Android on netbooks. And if it does get on netbooks, what advantage does it have for Android as a platform? It will require completely different apps - given the difference in screen size, processor, input... so it will actually serve, I believe to confuse the Android Marketplace.

    I've been thinking alot about this in general - what does Android gain from being an open, embedded system in relation to its fight for smartphones? Does it gain anything for getting used on digital frames? Embedded in a toaster? It certainly isn't bad, but I'm not clear that it is all that good.

    I'm going to stand by my thought that the medium term battle for second will come down to Android and WebOS after RIM starts it's nosedive.
  • It will save them in the sense that they will not have to go under / sell out to another company, (at least not because they have no other choice).

    Will it unseat Apple? No chance.

    As you alluded to I think RIM has more to fear from Palm, (and Apple and Google/Android), than Apple or Google/Android do from Palm.

    Apple loses some in the sense that they don't get to run away with the market, but that was not going to happen anyway.

    I disagree with your Android vs. WebOS matchup though. I think the matchup is between Apple and Android, especially when Android netbooks arrive and if/when Apple releases a tablet.

    I'm wondering if a Pre hit makes Palm attractive to RIM or Microsoft or Nokia...
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