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Verizon Will Either Cancel Or Constrict Pre Launch
Doesn't want Palm ruining Application store launch...
by Karl Bode 09:14AM Friday Sep 25 2009
Fresh off of complaints that Verizon doesn't exactly have the sexiest smartphone selection, The Street, cites "people close to the discussions" who claim Verizon at worst is no longer interested in offering the Palm Pre, and at best plans limited shipments. Outright cancellation of the Pre launch probably isn't likely, given it would be a reversal from company comments back in May that suggested the device would drop in six months. More likely? Palm's leaking their displeasure at restrictions being imposed by Verizon, which hints at a larger Verizon game plan we've discussed previously.

The Street's source claims that Verizon hasn't been particularly impressed with Pre sales. But there's a bigger, more obvious and obnoxious reason for the snub, according to the source:
quote:
Another snag is that Verizon wants VCast, its applications and mobile media download service, to be featured heavily on its phones. This is in direct conflict with Palm's app store, according to these sources.
Verizon's getting busy launching their own application store and doesn't want pesky things like consumer choice and competing application stores messing with their VCast revenues. With Verizon's new store, competing app stores won't be installed by default unless specifically requested by the customer (think Microsoft v Netscape).

Of course most consumers won't be informed that's even an option, and all Verizon marketing will direct users to VCast-loaded phones and Verizon's new expensive data and content plans. We illustrated this game plan back in January if you remember, when most of the technology press were busy prematurely praising Verizon without bothering to notice some of the finer details in Verizon's long term ambitions.

Sources tell The Street that should Verizon still place orders for the Pre, they'll be in such low volume that the majority of Verizon customers looking for a smartphone will still be herded toward Verizon's VCast-loaded phones and application store. The problem is, with the phone industry's sketchy history of innovation, many don't think the Verizon application store is going to be, well, good.

By rejecting and limiting consumer access to better devices and stores (Pre, iPhone) and focusing all real marketing efforts on their own lower quality content delivery mechanisms, Verizon thinks they're preserving their place in the food chain as content innovators. But if Verizon's application store stinks, all they're really doing is shooting themselves in the foot.

Again, despite the endless hoopla from Verizon Wireless about how they're embracing more open networks and devices, Verizon's version of consumer freedom is more showmanship than substance. As we discussed at great length yesterday, the phone companies are entering a terrifying new era where broadband evolution means their roles as "service" operators are ending. As such they'll do everything possible to avoid their worst nightmare: having to simply operate a network, in the process losing out on billions in ad and content revenue.

update: Several analysts insist everything's on track for the Palm Pre launch, but watch carefully and remember what we said. Even if the Pre does still launch, it won't get full marketing support and there will be other caveats, given Verizon's going to do everything in their power to herd consumers directly to their own application store.

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hep cat
do da dirdy bird

join:2001-02-17
Decatur, GA

Homebrew

Might also have something to do with people being able to make their own applications using homebrew.
--
Bowling: It's cleaner than baseball.

skyfreedomdo
Premium
join:2003-01-01
Boise, ID

Re: Homebrew

Another proof again that even if the iPhone comes to Verizon it will be required to have VCRAP on it and i hope says FU Verizon.
ATT inst looking so bad now!
--
SKYFREEDOM NETWORKS
Whatever the angle; We've got you covered.
dlewis23

join:2005-04-18
Boca Raton, FL

Re: Homebrew

said by skyfreedomdo:

Another proof again that even if the iPhone comes to Verizon it will be required to have VCRAP on it and i hope says FU Verizon.
ATT inst looking so bad now!
Apple will never go in for having that VCrap stuff on there devices. And this will be verizons down fall. There are going to be the 4 major platforms (Apple, Microsoft, RIM, Google) and they are not gonna be sticking VCrap on there phones.

Noah Vail
Son made my Avatar
Premium
join:2004-12-10
Lorton, VA
kudos:3
Reviews:
·Bright House

Re: Homebrew

said by dlewis23:

There are going to be the 4 major platforms (Apple, Microsoft, RIM, Google)
You forgot Symbian.
said by Information Week :

Symbian is the leading OS in the "smart mobile device" market. Statistics published in November 2008 showed that Symbian OS had a 46.6% share of the smart mobile devices shipped in third quarter of 2008, with Apple having 17.3% (through iPhone OS), RIM having 15.3% and Microsoft having 13.5% (through Windows CE and Windows Mobile).
NV
--
In my perfect religion, a giant hole appears and sucks up all the lousy people.
I call it the Crapture.
ZachAttack

join:2009-05-30
Yorba Linda, CA
Well VZW doesn't seem to be doing too bad, by themselves. If Apple wanted to expand their user base they'd go with the bigger better network. V-Cast isn't bad, yeah it's not open but Verizon hasn't had trouble growing using proprietary software and locked phones. Personally Verizon gives the best service, with the fastest data speeds on Wireless.
hottboiinnc
ME

join:2003-10-15
Cleveland, OH

Re: Homebrew

better? no such proof except for JD Powers. And that isn't even proof.

Just because it may work for you there, doesn't mean it's going to work for me in Ohio.
ZachAttack

join:2009-05-30
Yorba Linda, CA

Re: Homebrew

My family is all over Ohio, in Maumee, Worthington, and Dublin, and they all have and love Verizon. So maybe in NE Ohio or down by Athens it may suck but in the West it's good.
hottboiinnc
ME

join:2003-10-15
Cleveland, OH

1 edit

Re: Homebrew

NEO- Cleveland.

Service in Dublin works because that's their main MidWest Call center. As far as Maumee, that can be a laugh. Especially at the size of it compared to the Metro Cities; Cleveland, where TMO and ATT over run VZW

By the way, I'm from the Fremont / Toledo area.

Matt3
All noise, no signal.
Premium
join:2003-07-20
Jamestown, NC
kudos:12
said by skyfreedomdo:

Another proof again that even if the iPhone comes to Verizon it will be required to have VCRAP on it and i hope says FU Verizon.
ATT inst looking so bad now!
That's quite the stretch. I think it's more than likely exactly what the article states, that after the initial hype, the Pre just isn't that popular. I've held one and played with it and I don't care for the phone either. The OS is slick, but the phone has terrible ergonomics.

NOVA_Guy
ObamaCare Kills Americans
Premium
join:2002-03-05
Yep. Can't have those nasty phone purchasers and wireless customer buse deciding what apps are useful for themselves, can we?

It makes one wonder: did Verizon steal Apple's business model, or is it the other way around?
--
After listening to his UN speech, I'm convinced that Obama has a major self esteem problem and is projecting it upon the United States. He is more concerned with winning popularity contests than with keeping us safe.
dcdeadbeat5

join:2008-10-07
Washington, DC

I guess this means no iPhone either

Everyone here keeps wants the iPhone to go to Verizon. But this is a perfect example of why it will never happen. Verizon PR people say they support open devices. But Verizon has time after time locked their phones and crippled functionality (unless it is their functionality such as VCast).

They don't want another company making millions using an App store. They want all the money to themselves. Verizon and other telcos fear of becoming a "dumb pipe" and want access and control over content and how the pipe is used.

So I say thumbs down to Verizon. They may have the most reliable and extensive network. But they don't play well with others.

There will never be an iPhone on Verizon (unless it is an unlocked LTE version). But I am sure Verizon will find some way to block even unlocked LTE phones as well. Boo on Verizon.

CurGeorge8

join:2005-05-02
South Park, PA

Re: I guess this means no iPhone either

said by dcdeadbeat5:

... They don't want another company making millions using an App store. They want all the money to themselves. Verizon and other telcos fear of becoming a "dumb pipe" and want access and control over content and how the pipe is used...
Yea ... but Blackberry App world. Before App World came out, VZ had their own app store that you could download on their Blackberries. I forget what it was called, but it was slow, buggy, and didn't have that many apps in it. The only thing I liked about it was that you could download and bill to your account. They barely promoted it, it wasn't pre-installed on any of the devices, and you pretty much had to know about it to get it.

Now, Blackberry App World comes out, and they go ga-ga over it. All the new BBerries have a shortcut on the main screen to download App World, and VZ's advertisements are big on promoting Blackberries with all the Apps. Now, just like AT&T with Apples app's, VZ isn't getting a cut of any of that.

So, I don't think we can use the App Store argument as a cause to why Apple/Verizon won't happen. IMHO, it's not happening because VZ turned Apple down, and it seems like the Apple/AT&T relationship is "OK." On the other hand, if Apple seriously wants to be a contender in the smart phone market, and give Black Berry a run for its money, it can no longer have exclusive deals with just one carrier in each country. It will have to spread out.
glinc

join:2009-04-07
New York, NY

hehe

Verizon at its best!! so there might be a chance HTC Hero and other android phones will not be coming either since it has its own app store.

ArrayList
netbus developer
Premium
join:2005-03-19
Brighton, MA

Re: hehe

yea. i doubt that android will make it to Verizon. if they can't handle the Pre, there is no way they could handle what Android is capable of.

equus
Funny, It Worked The Last Time
Premium
join:2000-10-02
Milpitas, CA

NO Pre and NO iPhone..Vive La BB

Well, Palm Pre has had very sloppy quality control, I had five devices replaced within a span of 45 days got tired of it went back to VZW to my trusty BB. I wouldn't want that iPhone even if VZW had a weekend fire sale !!.
--
I thaw a puttytat,I did,I did.
jpboss

join:2003-09-13
Conyers, GA

Classic.

As others have stated. The big V fanboi's come on here and post on every AT&T article how Big Mama's network sucks and this and that and now look at this hot mess the Big V has stepped into.

FFH5
Premium
join:2002-03-03
Tavistock NJ
kudos:5

Re: Classic.

said by jpboss:

As others have stated. The big V fanboi's come on here and post on every AT&T article how Big Mama's network sucks and this and that and now look at this hot mess the Big V has stepped into.
1st of all this is merely a rumor and not a fact yet. And if it does become fact, then Verizon is merely driving people to other wireless providers no matter how good their network is. So Verizon will just end up hurting itself if they stay away from smartphones with their own app stores. The free market in action.
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My BLOG .. .. Internet News .. .. My Web Page

ZachAttack

join:2009-05-30
Yorba Linda, CA

Re: Classic.

Verizon did a pretty good job of growing to be huge all on their own, before they bought Alltel. AT&T's getting lots of bad press about poor service reliability. None of my friends have changed their wireless in like 2 years since the iPhone came out, everyone that got the iPhone is either staying put or coming to Verizon.
caco
Premium
join:2005-03-10
Whittier, AK

1 edit

The destruction of goodwill

Verizon has built up a very large foundation of goodwill with their FIOS product to the point that most people give their billing problems a pass. They seem determined to crush that goodwill at all cost with the rumored policies and current lockdown policies of their wireless division.

Can you just imagine the amount of love they would get if they could just transfer some of that goodwill to wireless divison?
--
»www.seabee.navy.mil

Dolgan
Premium
join:2005-10-01
Sun Prairie, WI
Reviews:
·Charter

Re: The destruction of goodwill

Goodwill thru FIOS deployments? What are you smoking? The FIOS deployments have caused nothing but animosity in areas it is not being deployed in, and has sucked as much money as possible out of those areas to fund FIOS deployments. The result of less funds in the copper only areas has caused a degradation of service to those customers, and a growing distaste for anything related to Verizon. You also seem to be forgetting the broken FIOS billing system which has caused headaches and distrust for those affected...some may have forgiven the billing errors, but not as many as you think.
caco
Premium
join:2005-03-10
Whittier, AK

Re: The destruction of goodwill

Read my 1st sentence again regarding billing problems. Fios is one of the few ISPs that gets an Gold rating at BBR. Graned it is not scientific but most reviews of FIOS are positive on most sites. Not sure how you want people to be angry because something is not available in their area.
--
»www.seabee.navy.mil

spamd
Premium
join:2001-04-22
Cherry Valley, IL

I wonder how much it cost Verizon.

I wonder how much it cost Verizon. To want to keep it's walled garden approach and not being just a "dumb pipe". Honestly all I want is a dumb pipe. I don't want my carrier deciding on what and how I can use my phone/pda... If available capacity or spectrum is an issue then scale it out to handle it.

Verizon is soo close to becoming the perfect wireless network if they would only let its customers have what they want.
--
When everything is coming your way, you are in the wrong lane.

jimk
Premium
join:2006-04-15
Raleigh, NC
Reviews:
·Time Warner Cable

1 edit

Don't think it is about the app store...

Edit: I should have said this is all just a rumor. There is no way to tell what is going to happen for sure regarding Palm devices on VZW. But if they don't end up there, it probably won't be due to the app store.

BlackBerry already has its own app store and Verizon allows it. Outside of locking GPS to VZNavigator on older smartphones, VZW has not locked them down. GPS works fine with third party apps on new smartphones.

There is no real way to know why VZW made this decision, but with the rumored Android launch, they may not want to support two new platforms on top of Windows Mobile, BlackBerry, and their regular phone lineup. They may have not been able to negotiate with Palm for one reason or another.

The least likely reason for this decision would be about Palm's application store. If it was really about that, I would have to think Palm and Verizon could work something out. Anything is possible, but the trend right now is to more open smartphones on Verizon.
cghh

join:2001-01-15
Milpitas, CA

Re: Don't think it is about the app store...

said by jimk:

BlackBerry already has its own app store and Verizon allows it. Outside of locking GPS to VZNavigator on older smartphones, VZW has not locked them down. GPS works fine with third party apps on new smartphones.
And Blackberries are not even limited to the Blackberry store. You can go directly to the developer's Web site and download the app to your phone after paying the cost, if any. This is on VZW, "out of the box", no "jailbreaking" necessary. Or write your own applications, if that is your thing.
thebulldan

join:2005-06-13
Bridgeport, PA

Re: Don't think it is about the app store...

Right - so to draw this whole Pre/iPhone parallel is nonsense.

Look - VZ and their VCast stuff for "Premium Phones" or whatever they call it silly. They raised all of their insurance premiums and so on with Smartphones too (not sure if I saw that reported here).

I love my Storm and can't wait for the Storm 2. BB is beast. Tethers great with my laptop. App store is decent. MMS works fine. Internet browser is good for my purposes.

All I need is the Formula1 app and Sirius app to get ported to BB and I am happier than a pig in , well, pig stuff.
jjeffeory

join:2002-12-04
USA

Wow, this doesn't look good...

... for Verizon's image. There's lots of talk about openness, yet when it comes down to it Verizon is all talk...

CurGeorge8

join:2005-05-02
South Park, PA

1 recommendation

Engadget says this is not so

According to a post at Engadget, this is not so.

»www.engadget.com/2009/09/25/rumo···nalysts/

FFH5
Premium
join:2002-03-03
Tavistock NJ
kudos:5

Re: Engadget says this is not so

Deutche Bank disputes the no Palm Pre on Verizon story:
»digitaldaily.allthingsd.com/2009···alm-pre/
Deutsche Bank’s Jonathan Goldberg dismissed it as “off base.”

“We believe the press reports late Thursday afternoon that Verizon would not launch the Palm Pre are incorrect,” Goldberg wrote. “Our checks continue to point to healthy carrier demand for the Pre early in calendar 2010. We believe Palm has placed orders with the supply chain for another version of the Pre with features highly consistent with a Verizon launch.”

Over at Morgan Keegan & Co, Tavis McCourt was equally dubious. “Palm reiterated its FY2010 guidance, which we believe REQUIRES a launch at Verizon (you just can’t get there with just Sprint and AT&T),” he wrote. “Verizon has carried just about every Palm product in its history, and the Pre is clearly the best.

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My BLOG .. .. Internet News .. .. My Web Page

xenophon

join:2007-09-17

1 recommendation

VZW needs a strong consumer smartphone

Windows Mobile and BlackBerry are primarily biz devices, not consumer devices for the most part. iPhone and Pre/webOS are the two leaders in consumer oriented smartphones. Google is a question mark. It's primarily a geek device at this time but could eventually play well in either market.

I have a Pre and it's the strongest platform I've used (have used all the others) and is generally more open than iPhone but is not a biz device like BB.

I don't think Palm will fail w/out VZW since they are also rolling out in other countries, but they could use VZW support.

I wonder how many VZW customers hold out for a Pre would now consider a switch to Sprint?

PGHammer

join:2003-06-09
Accokeek, MD

Re: VZW needs a strong consumer smartphone

And why couldn't a BB (the Storm in particular) be a useful consumer smartphone (considering that it has more features than most current consumer smartphones, including the Pre, out of the box, not to mention that it costs less than the Pre)? A Storm from VZW (two-year contract) is all of $50, which is a bargain for a non-junk phone period, let alone a smartphone. (That price is half that of the Pre or iPhone GS.)
The Pre has buzz because it uses webOS (cloud computing on the phone) and as long as it's on a second-tier (Sprint) network, I won't touch it with my local (VZW/Sprint) cell tower. (Then there is the Storm's price advantage over the Pre.)

Time
Premium
join:2003-07-05
Irvine, CA

lol

And some of you people think Verizon is going to be getting the iPhone? I guess the joke's on you.

•••

Gbcue
Premium
join:2001-09-30
Santa Rosa, CA
kudos:8

Somebody Bring the Pre To Verizon from Sprint

Why doesn't anybody just buy the Pre and bring it to Verizon for their use?

Open network, and such...
pimpinparker

join:2005-06-14
North Baltimore, OH

Dear Verizon

Dear Verizon, fuck you.
Yes Verizon's service is usually great (I have Verizon) but PLEASE release some good phones, I want real apps, not the crappy ones that you sell. Please just give us one good phone, I don't want your crappy Vcast or whatever stupid crap you're making.

Sincerely
-Unhappy customer
rmergner

join:2002-02-02
Pipersville, PA

Re: Dear Verizon

Yes pimpinparker, I'm with you on this one. I've waited long enough for VZW to wake up and offer a decent phone. Now the contract has expired on 3 of my 5 lines, and the other two are not far behind.

Verizon is truly the king of empty promises. As soon as the dust settles on the latest iPhone software upgrade (reading about lockup problems with it since the 3.1 upgrade) I am jumping ship.