Palm Pre set for May 16 launch at AT&T Mobility

Palm Inc. scooped AT&T Mobility announcing on its Facebook page that the nation’s No. 2 carrier would begin offering the Pre Plus beginning May 16 for $150 after rebates. In addition, AT&T Mobility will for a limited time after launch provide Palm’s Touchstone Charging Dock for free to customers picking up the device in retail stores.
The launch is somewhat of a win for Palm, which recently announced it was being acquired by Hewlett-Packard Co. for $1.2 billion after the company put itself up for sale following disappointing sales of its Pre and Pixi product lines. Many industry observers have heaped acclaim on the devices’ WebOS operating system, but consumers have been slow to discover the devices due to an increasingly competitive smartphone market dominated by Research In Motion Ltd.’s Blackberry lineup, the growing number of Google Inc. Android-powered devices and Apple Inc.’s iPhone.
Verizon Wireless, which began offering the device earlier this year, recently slashed the price on its offering and began throwing in the device’s embedded mobile hotspot feature for free. The nation’s No. 1 carrier is currently offering the Pixi Plus for free and the Pre Plus for $50 through its Web site.
The pricing issue could spell trouble for Palm at AT&T Mobility as the carrier currently has a number of smartphones below $100. More disturbing for the Pre’s future at the carrier is that it’s selling iPhones for as little as $49 for refurbished 3G models.
Sprint Nextel Corp., which had exclusivity for the device through the end of last year, is currently selling the Pixi (non-Plus version) for free while the non-Plus Pre remains at $150.
Last month French operator SFR began offering the first GSM-version of the Pre and Pixi models through the carrier’s Web site with plans to expand to retail locations beginning today.