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Verizon Says No To The Palm Pre? [UPDATED]

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According to The Street, Verizon has decided to pass on the Palm Pre after saying that it would be on their network early next year:

The reason for Verizon’s change of heart on Palm has to do with several factors, say these sources. The fact that the Palm Pre has not been the blockbuster in sales that it was expected to be is one problem. To date, Sprint’s fading No.3 status has not been compelling enough to get the Pre phone sales over the crucial 1 million-sold mark.

Another snag is that Verizon wants VCast, its applications and mobile media download service, to be featured heavily on its phones. This is in direct conflict with Palm’s app store, according to these sources.

If this is true, that is a major kick in the testicles for Palm who need all the friends they can get at the moment. Why? Verizon has a massive subscriber base which I think would really help this phone to gain some market penetration. Sprint on the other hand is bleeding customers. Not good if you are trying to sell a smart phone that was intended to save your company. Perhaps they should have went GSM as I’ve been saying for a while? That might have given them a few more “friends” to work with.

Oh well, I guess it might be time to start planning the funeral for Palm.

UPDATE: The Boy Genius Claims that Verizon will get the Palm Pre. Others seem to agree. Perhaps Verizon and Palm would be nice enough to put this to rest and say that it’s going to be available (or not).

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