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Palm playing a risky game by limiting stocks

Palm playing a risky game by limiting stocks

For many mobile phone enthusiasts, the Palm Pre will be the must-have handset this year. It’s not hard to see why. Not only does is it the first phone to feature Palm’s much-anticipated Linux-based operating system Palm webOS, but it’s also home to a camera, great media player and advanced e-mail functions.

But it seems that Palm could decide the Pre needs a helping hand. According to a report from Bloomberg, analysts are predicting that initial stocks could be limited to less than 400,000 worldwide in a bid to manufacture a buzz around the launch. It’s a strategy that’s worked before. Most notably in the games sector where Nintendo Wiis became even more desirable for their scarcity. But it’s an undeniably a risky approach.

That’s especially true given the number of other high-tech smartphone releases set for this year. It’s not hard to see a situation where potential Pre buyers get fed up by lack of availability and turn instead to the HTC Magic or the forthcoming edition of the iPhone.

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