Sprint issued the following statement on the matter:

After further internal review today, the offer of a port-in service credit of $100 to new customers who buy the Palm Pre has been pulled because it was put into the system in error.

That’s a hell of an error. Sprint did say that it would honor the deal for anyone who signed up while it was live, but after that, no dice. I’d be curious to see what the subscription numbers looked like while the deal was running, and whether they looked any different from the usual.

On the upside, maybe Sprint doesn’t need as many customers as I thought it did.

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I think it’s a decent strat, too. The Pre isn’t my phone of choice, mostly because the differentiators don’t really matter to me. The keyboard, though physical, is way too small for my hands, and I don’t really need multitasking, especially for a phone that doesn’t have many apps. For a first time smartphone owner, though, the Pre is really a great choice. The OS is quick and easy to navigate, includes a decent camera, and has all the basic smartphone functions you need. You can also get a full data plan cheaper than with most Blackberry devices or the iPhone.

It’s no secret that Sprint needs customers, and it needs to retain those customers. Offering solid deals in the midst of a recession is an almost sure-fire way to get a few converts. You can get the deal by signing a two-year contract with Sprint before October 31st. The credit will be spread across three months.

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Those numbers aren’t coming from Palm, who remains quiet where specific figures are concerned. They’re from Edward Snyder at Charter Equity Research, who thinks the Pre could sell as many as 1 million units within its first quarter. That looks small compared to the latest iPhone release, but it’s a full 300% improvement over last quarter, and that’s just for the Pre.

Palm isn’t out of the woods yet, though. Regardless how many phones they sell, they still need to back those phones up with decent support, and that’s what has some people worried. Their are already droves of complaints of shoddy construction and significant phone damage from relatively mild use.

I wrote an article yesterday about the importance of application support, which is where Palm is looking the worst. They’ve still got just 30 apps. Even if half of them are excellent, daily use type apps, that won’t be enough to keep a million users interested for long. Palm needs to release the SDK in a bad way, and it’s looking like a couple months before they do

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I’d like to think the Pre will be successful, but it’s going to be a tough sell. Sure, it looks like a great phone, and a lot of people are excited about it, but who will buy it? Sprint customers are a great place to start, but that means no growth for the wireless provider. The loyal Palm users are another likely demographic, but that doesn’t get a great device in the hands of new users. Your final hope is first-time smartphone users, assuming they can be lured from the iPhone or a Blackberry, both of which are potentially cheaper than the Pre.

Source: Reuters

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