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Palm plans on intentionally short selling the new Palm Pre
According to Bloomberg, Palm plans to INTENTIONALLY short sell this product to see if they can imitate the success of the Wii
Bloomberg reported Wednesday that the Palm Pre might be in short supply when it's made available later this year.
Citing estimates by six market analysts, Bloomberg says the Pre will "debut with about 375,000 units in stock." According to the report, that relatively small number (Apple sold 1 million iPhone 3G units in the first three days of availability last year) might have little to do with Palm's output capacity and quite a bit to do with its desire to live up to the Pre's hype.
"It's important to have a success like selling out," Hugues de La Vergne, a Gartner analyst, told Bloomberg. "The Pre has to live up to the hype or else they'll lose their momentum to rival products coming out soon after."
Neither Palm nor Sprint has confirmed plans to use a stock shortage to sell more Pre units. And don't look for either company to confirm such a claim.
But what if this really is the company's plan? Wouldn't that annoy you?
Though companies won't admit it, stock shortages are used often to build hype for a product. Claims of intentionally shorting supply have been a constant nuisance for Nintendo as it battles to keep the Wii on store shelves.
Intentional stock shortages might seem like a poor financial move for a company, since it's essentially leaving revenue on the table as consumers search for products and can't find them. But popular opinion contends that when products are sold out, opportunities for higher revenue are greater. Those who own the product will boast. News organizations will constantly discuss stock shortages. And those who don't have the device will be talking about the sellout with others. All the while, more people will become aware of the product and want to buy it.
http://news.cnet.com/manipulating-th...is-just-wrong/
it's one thing to do it's it's another to ACTUALLY tell people that you are doing it.
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