Palm Investor Says iPhones Customers will Switch to Pre

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Submitted by lalit on March 9, 2009 - 6:28pm.

In an interview with Bloomberg, Palm investor Roger McNamee said Palm Pre would lure iPhone customers when their contracts start expiring in June.

“You Know the beautiful thing: June 29, 2009, is the two-year anniversary of the first shipment of the iPhone,” McNamee told Bloomberg. “Not one of those people will still be using an iPhone a month later.”

He further added, “If you bought the first iPhone, you bought it because you wanted the coolest product on the market.” And he considers that Palm Pre will be the coolest phone on the market by June.

McNamee believes that Palm’s new WebOS will gives it an edge, as RIM’s BlackBerry is based on 13 year old technology and iPhone is based on nine years old Mac OS X. He forgot that WebOS is based on Linux, which is more than 18 years old.

It looks like McNamee is high on Palm coolaid, as he is not considering that by then Apple will release their next generation iPhone as well as iPhone OS 3.0, which will include many new features. The other factor that might have negative affect on Palm Pre is that iPhone has the highest customer satisfaction ratings for past two year, whereas Palm was in the bottom half of customer satisfaction. And changing customer’s opinion can take considerable time.

Also there is nothing like the App Store, it is the biggest mobile application store and has the widest selection of applications. This makes iPhone not just a mobile device but a platform that many iPhone users will be reluctant to leave. The one thing Palm Pre can do is further damage Windows Mobile market share.