MPM
Member
Registered: Jun 2000
Location: Sunnyvale, CA
Posts: 216 |
Yes, they could make money with an upgrade
quote: Originally posted by dkessler
<snip> I think the reality of the PDA market is that as long as users are willing to buy a new device to get the new features, it's just not cost effective to try to develop "patches" that are going to eat up engineering hours and not generate any revenue.<snip>
Actually they could get revenue from an OS upgrade. I remember reading somewhere (could have been here!) that the FTC forced Palm to sell the OS 3.5 upgrade to most users because they were a public company, and that the upgrade was to add features and was not just a bug fix release. Adding features = selling a product, so giving the upgrade away could bring the wrath of the anti-trust lawyers. Does Microsnot give away OS upgrades? No way!
Same thing would apply to Handspring, so they would have to sell such a upgrade. Personally I think that Handspring would be able to make plenty of money by selling such upgrades, without cutting into sales of new units. The best example of this is the choice between a Platinum and a Deluxe. Before the rebate started, there was only a $50 difference between the prices. The only extra features the Platinum has are a 50% increase in speed (which I can get on my Deluxe with Afterburner) and Palm OS 3.5 (which I can't get).
So Handspring will likely not provide an upgrade to OS 3.5 for the Deluxe because they dont want to cannibilize sales of the higher priced Platinum. But if they charge money for the upgrade, say $30, I don't think that would cannibilize Platinum sales. If they charged $50 for an upgrade to OS 3.5 they certainly would not hurt Platinum sales.
Would I buy a $50 OS 3.5 upgrade for my Deluxe? Yes. Because I don't want to buy a Platinum for $300 (that's $250 more than buying the upgrade). I could always sell my Deluxe on eBay, but I'd still be out much more than $50 in the end.
Here is an idea: Handspring should sell an upgrade to Palm OS 3.5 that upgrades just the base level OS and not the built-in apps, for $30. They could then sell a better upgrade to OS 3.5 that also upgrades the built-in apps for say, $50. This would of course take more memory, but consumers would then have a choice, and we like choices.
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