0:59 RIMM Research In Motion sinks below its morning range lows near 78.50, eyeing yesterday's bullish gap b/w 78.15/77.71 (78.45 -0.83) 10:58 PALM Palm Pixi not that different and price cuts for Pre, as expected; reit Sell- Morgan Joseph (14.52 -0.46) -Update-
Morgan Joseph notes this morning, Palm announced the release of the Pixi at Sprint, not at AT&T, as previously thought, and a $50 price cut on the Pre. They believe the Pixi is a nice device but threatens to cannibalize Pre sales given a large number of overlapping features and the expected lower price point. Firm notes like the Pre, the Pixi runs on the webOS and boasts similar features such as a touch-screen, full integration of information from web-based applications such as Facebook, Outlook, and Google, and has now added Yahoo! and LinkedIn integration capabilities. Pricing on the Pixi is currently unknown but we do not expect this to be a game-changer for Palm given a similar phone on the same Sprint network. The firm believes price cuts this early in the Pre cycle may be an indication of slower-than-expected sales and represents an effort to spur holiday sales of the Pre. The Pre was launched three months ago, on June 6. They believe this cut could hurt Palm margins should the company have to make price concessions to Sprint, which is currently unclear. Firm reits their Sell and $7.50 tgt.