Thursday, September 27, 2007

Just doesn't make sense

With Palm's launch of the $99 Centro today, I got to thinking about Helio and how phones like this are impacting their business.

Looking at the Helio lineup, their Ocean phone (but don't call it a phone, you'll upset Sky) is $295, and their low end phone is $99 (with all discounts applied). The service starts at $65/month, but that only nets you 500 minutes though you get unlimited SMS, data, etc. An actual useful 1500 minute plan is $100 a month.

If Helio is targeting young, wired consumers, then I think they need to have pricing that reflects what that target market can bear. When a 20 something can get an iPhone for $399 or a Centro for $99 with a monthly service around $39 a month, why would they bother with Helio's offerings?

I don't know how much longer they can continue to toss money into the Helio fire and watch it go up in smoke, but I'm glad they're not burning MY money.

No comments: