The encyclopedia · Product & Design · Product decision · 2009
Palm's Pre was the best iPhone alternative in 2009 — and it still wasn't enough
The Palm Pre launched in June 2009 with webOS, gestures and true multitasking. Reviewers loved it. But the app ecosystem was tiny, and Palm ran out of money.
Palm · 2009-06
What happened
The Palm Pre, launched in June 2009 on Sprint, was the first phone to run webOS — a new operating system built on web technologies with a card-based multitasking interface, gesture navigation and a unified notification system. Reviewers praised it as the first credible iPhone alternative.
But the Pre's hardware was underwhelming: a small screen, a mediocre camera and a slide-out keyboard that felt cheap. More critically, the app ecosystem was tiny compared to the iPhone's App Store, which had over 50,000 apps by mid-2009. Sprint's limited distribution and marketing budget also constrained sales.
Palm's financial position was precarious, and the Pre's sales, while respectable, were not enough to sustain the company. HP acquired Palm in 2010 for $1.2 billion, primarily for webOS, and then killed the platform (see hp-tablet-webos). The case illustrated how a great OS and positive reviews are not enough without an ecosystem, distribution and financial runway.
Why it happened
- The Pre's app ecosystem was tiny compared to the iPhone's 50,000+ apps.
- The hardware was underwhelming: small screen, mediocre camera, cheap-feeling keyboard.
- Sprint's limited distribution and marketing budget constrained sales.
- Palm's financial position was precarious, and the Pre's sales were not enough to sustain the company.
The lesson
A great OS is not a business. webOS was innovative and well-reviewed, but the Pre had no apps, weak hardware and no money. A platform without apps is a demo.
Aftermath
Palm was acquired by HP in 2010 and webOS was killed in 2011. The Pre is remembered fondly by tech enthusiasts as the 'best phone that nobody bought.' The case is cited as an example of how timing, ecosystem and financial runway matter more than product quality.
Sources
- Palm Pre — Wikipedia (launch, webOS, HP acquisition)
- Ars Technica — RIP Palm: it's over, and here's why (App Catalog at launch, app ecosystem gap)
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