TheStreet.com Said Verizon Wireless Dropped Pre; Maybe

I think TheStreet.com is trying to be like the Fox News of the Internet financial sites.  It's been going off on things that doesn't make sense and caters to a fringe group of readers.  By all accounts, they just rip rumors from other sites.  At best they make stuff up because they're wrong so often!

See when we speculate here, we tell you.  For instance, we tell you what we like to see in the next iPhone or iTablet.  Speculation.  Wishlists.  We tell you.  Anyway, just to be fair, as right as Fox News is, MSNBC is pretty much to the left as well.  So, I'm sure they're just as entertaining if not newsworthy.

When the possibility of Verizon Wireless dropping the Pre was brought to my attention, I had to go and see, even if it's from TS.com.

Any truth to this?  So far, Palm has continued to back their views and no blog sites like Engadget or Gizmodo are saying anything about it.  And in tech, their words are pretty good in my book.

I believe it's possible that there might be something of a leak from VW to these guys to pressure Palm into dropping their prices.  Renegotiation.  Perhaps, they like what they see from Motorola's Android phone and doesn't feel the Pre has anything additional to offer.  Perhaps it is also because Pixie would be the second phone to by-pass VW and they're not to happy about that.

TS did provide reasons for this potential move from VW.  Pre not selling well.  And independent app store contrary to VW's closed network policies.  Makes sense.

Still, I'm inclined to attribute this to corporate intrigue or speculations being treated rumors.  If there is any truth to this, here is my own speculation for this coming out now.

Verizon's Blackberry deals has done well but barely enough to stunt mass exodus to other carriers.  They really want the next iPhone but aren't' sure they'll get it.  ATT is speculating that if the iPhone goes to VW, the might bring in something like the Pre (so far, there is no Android devices on ATT's wireless network).  With all these moving parts behind the scene, VW it offers the best devices on the market and right now, that's the iPhone.  

Dropping the Pre might be a a concession to Apple, but likely, VW probably doesn't want to have too much on its plate.  In six months, it'll be dealing with RIM, Windows Mobile, Android, and Pre.  Then in about 6-12 months, the iPhone.  

Of these players, Palm is the smallest.  Pre, while successful, hasn't quite lit the market on fire many, including myself, had been hoping for.  While the iPhone has been steadily selling out, the Pre started out selling for $299 ($199 after a $100 rebate) has dropped to $150 with Sprint, and $100 on Amazon (not linked to Onxo).  Perhaps, VW is seeing this and wants a pay a lower price.

Impact:  It's hard to say because we don't even know of TS story is even true.  But what we're really talking about here is choices and demands.  Whether Pre does make it onto the VW network today or when LTE goes live, it's always good to have many players fighting for our hard earned dollars through competition and innovation, not locking one device to another for multi-year contracts.