Andre Yoskowitz
7 Jul 2009 22:56
Telefonica SA has become the exclusive European seller of the Palm Pre today, winning the contract over other large potential suitors.
The Pre was launched last month in the US to large hype and has sold 300,000 units in its first month.
Telefonica operated in Spain, the UK, Germany and Ireland and says the phone will be available before the holiday season. There was no word on how much the phone will cost with contract.
The Pre was originally heralded as the "iPhone Killer," which is somewhat ironic as Telefonica sells the iPhone as well. To earn the exclusive rights to the iPhone, Telefonica was forced to give Apple 40 percent of all revenue generated by each phone sale, taking a large chunk out of their margins.
Adds Ovum analyst Tony Cripps, via the WSJ: "Given its early stage of evolution, Palm would have been better off with a European telco partner that isn't already beholden to Apple. Offering the two devices side by side looks like a one-sided fight to us."