Pré sales plunge after iPhone 3GS arrival, analyst claims

Sales of Palm's Pré are slumping, a US financial analyst has claimed, but the good news is that may make the smartphone cheaper to buy.

Morgan Joseph analyst Ilya Grozovsky this week told investor clients that his checks suggest July Pré sales of just 100,000 units - half of the number be believes were sold in June.

Based on what his sources suggest, Grozovsky said he expects Pré sales to fall further this month. He cut his Q3 sales forecast from 400,000 Prés to 350,000. Sales of the new smartphone will have harmed sales of Palm's other offerings.

Barron's notes that Grozovsky has always had lower Pré sales expectations that Wall Street as a whole does

“Should sales prove to be in line with our checks," Grozovsky said, "we believe price cuts may be looming going into the holiday season in an effort to spur holiday sales of the Pré."

Good news for buyers, that, but not for Palm's sales figures.

The Pré is currently only available in the US from carrier Sprint, but it's expected to go on sale on the O2 network here in the Autumn - but not on 30 October, the operator said this week. ®