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.