Sprint revealed today that, in light of what are expected to be sobering financial results from Q4 and 2008 as a whole, they would be laying off 8,000 employees by the end of March. The carrier hopes to save $1.2bn each year in staffing costs through the cuts, which will affect employees at “all levels of the company”, together with freezing 401(k) benefits and annual salary increases. Palm’s new smartphone was the only upcoming handset to be name-checked in Sprint’s press release, begging the question: can the Pre not only save Palm, but Sprint too?
Past experience with so-called “super handsets” has shown that it takes more than a popular device to turn a carrier’s fortunes around. The Samsung Instinct grew into being one of the best devices of 2008, again a Sprint exclusive, winning awards from consumers and tech experts alike. However despite the popularity – and Sprint’s growing customer-satisfaction and network performance ratings - it hasn’t been enough to turn the financial tide.
The Pre, like the Instinct, is coming up against the usual iPhone 3G comparisons. Unlike the Instinct, however, Palm’s smartphone seems to be holding its own far better, even at this early stage in the game. And despite Apple’s vague suggestions, the more general consensus appears to be that Palm have come up with a platform, in webOS, that doesn’t feel like a poor replica of OS X on the iPhone. The Pre also manages to offer something often-asked of Apple but not, so far, delivered: a hardware QWERTY keyboard, despite little difference in dimensions.
So, alluring hardware, innovative software and what must amount to carrier enthusiasm bordering on desperation. The Pre is not only adding up to a pivotal device for Palm and Sprint, but a winning situation for customers: expect iPhone-undercutting prices, highly competitive data packages and similar, as Sprint attempt to claw business from their rivals. If the carrier holds any sway with Palm’s release schedule, it’s a fair bet we’ll see the Pre sooner rather than later.
