Palm Pixi out next month
Pared down Pre
The Palm Pixi will be launched next month, it has been confirmed.
A low-end alternative to the Pre – reviewed here - Pixi was unveiled on 9 September. But it has taken US carrier Sprint until today to confirm that the phone will be available in North America from 15 November.
Customers willing to sign a two-year service agreement with Sprint will be charged $200 for the Pixi after a $50 "instant" rebate. You'll get another $100 (£61/€66) back if you send in a coupon.
Sprint will offer various Pixi price plans, including one that provides unlimited mobile calls, nationwide texting, email and web browsing for $70 per month.
Pixi is compatible with the Pre's Touchstone wireless charging system and allows you to express your mood with a series of $20 interchangeable back covers.
Palm has already promised that Pixi will be sold in Europe, but the manufacturer hasn’t yet announced a specific UK launch date or carrier handshake. ®
When I forgot to send in my new customer rebate, a call to my Verizon salesman had it deducted directly from my bill. it is true that a lot of companies count on people not following through, but it's also a way to build a contact list (of credulous folks, no less).
In general, if I see the word rebate, I skip it.
Probably well below 10% of customers will remember to claim a rebate several months down the line, so it's a way of pretending the price is low, while actually getting to keep most of the cash, plus you can earn interest on it in the meantime, even if people do claim 100% back (if it's an automatic pay-out).
I've seen studies at work, where small rebates after a year only get around 2-5% uptake...
It also means that if people don't stick to their contracts but keep the phone you lose less, and finally if the cashback is coming as a promotional tool from Palm via the carrier, it's just that Palm don't have the cash. I guess everything they get is being poured into ramping up production, so they can get into the European market as quickly as possible.
More substantially, can somebody explain how mobile networks can get away with charging that sort of money over in the US? A low-to mid-range phone, being sold on a 2-year contract, and STILL they want money upfront? Here in Europe for a similar sort of phone we'd be getting cash back from the retailer (yesterday I saw the LG Viewty FREE on a Voda 2yr contract (22.50 euros/month, about $30) with 150 euros cashback, and 2 free tickets to a dance festival thrown in for good measure.
Do Merkins really earn so much that money's not an object, or is it a question of monopoly pricing?
Please tell me!!
> they appear to just be a pricing con
Got it in one. It's to allow US companies to say, 'This lot is only $99*!' with '*$199 with $100 rebate'. That way, most people will spend the $200 thinking it's only $100, and the few who remember to jump through all the hoops, will get the rebate check months later, if it wasn't 'lost' along the way.
Rebates are a way to coax you into a deal with potential lower costs. In this case you pay $200 up front, with the manufacturer offreing to send you $100 after you make your purchase. and they will. This is an additional "sale" over whatever local merchants charge.
The catch for the consumer is that they generally have to clip the code off the box, and send in a copy of their receipt....then wait up to 6 weeks to get their rebate. For those who are good about doing this correclty and immediately they get a $100 additional savings.
The benefit to the manufacturer is that they can lure consumers in with the promise of hte rebate, knowing full well that <50% will ever actually mail in the rebate request. Generally hte larger the rebate the more likely the consumer will follow through. Smaller rebates have <20% follow through.
IF you follow instructions you can potentially get a larger rebate than would otherwise be available. The manufacters get to promise a bigger rebate and draw in extra sales knowing that in reality the actual rebate per unit sold will just be a fraction of what they offer.
Some stores have easy online rebates where you submit a form online....no paper, no postage. This is the preferred way to go and it's in the stores best interest to get you the rebate as it costs them nothing.