The new device is rumored to come with a price tag set at $399

Jan 9, 2009 16:33 GMT  ·  By

According to the latest news on the web, Palm's newly unveiled 'Pre' handset with the WebOS has a rather unexpected price tag. While, given its features and performance levels, the phone was expected to hit the market for about $199, the same as iPhone 3G, which would have given the device a great start, it seems that the actual price of Pre will in fact be $399.

The company somehow omitted to disclose information on the price and availability of the device yesterday, yet it seems that some people managed to get an insight view on its plans. As for availability, the device is expected to be launched on the U.S. market sometime in the May-June time frame, and to come to Europe about two months later. Moreover, the European version is rumored to come unlocked, sporting a $500-$550 price.

Another thing that was of great interest to the crowd was the availability of a GSM/UMTS Pre version, and, as Paul Ghent, VP of sales for Palm Europe, is reported to have confirmed, the company is working on the device, which means that it should become available on the UK market in the second half of the year, as stated above.

Even if the $399 price tag might seem rather leveraged for the Spring Palm Pre, we should remember that Apple’s base iPhone first came to the market at the same cost. According to some voices on the Web, we might also see another iPhone released before Pre hits the shelves, which means that the numbers might also drop a little by that time.

Pre is considered to be Palm's chance to get back in the game, and a high price of the device could mark a bad starting point for the company. Since the competition is tight enough, the manufacturer has to mark a homerun with the new handset and its operating system. However, seeing as how there will still be a few months before the phone comes to the market, we might see some turns of the tide.