Palm's plan for Pre apps

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What happens when you build a tremendous new device, design and execute your own operating system that incorporates some innovative capabilities and receive rave reviews from developers and users but don't roll out a fully stocked app store with the launch of the device?

Palm Inc. is finding that out right now.

Once known for leading the universe in cutting-edge handheld gadgets, on Thursday Palm launches the Palm Pre in Canada two months after its U.S. debut and analysts are already saying the Pre's success or failure will determine to a large extent the life or death of the company.

With its touchscreen control, slide-out QWERTY keyboard and custom OS that excels in multitasking and personal information management, the Pre has garnered positive reviews since its exuberant unveiling at this year's annual International Consumer Electronic Show. It launched in the U.S. to equally rave reviews by respected tech blogs Engadget and Gizmodo and review sites such as CNET.

(The Palm Pre features are covered in several Globe on Technology blog posts over the past two weeks that include highlights, lowlights and expanding on some of the features.)

Palm Pre hits shelves Thursday; takes on Rogers' iPhone in battle for customers, writes Simon Avery

Yet there's one major criticism of the device that is proving to be somewhat of an Albatross around the Pre's neck and that's the dearth of downloadable apps - small programs that expand and customize a user's phone in innumerable ways. Analysts have identified applications as a game-changer when it comes to choosing a smart phone and some say Palm's slim pickings may prove unappealing to consumers.

"[Lack of apps]is going to be a huge Achilles heal for Palm," said Carmi Levy senior vice-president, strategic consulting with AR Communications. "What it's done is compromised the company's ability to capitalize on the bump that you usually get when you launch a new device. So there's huge amount of publicity surrounding the launch and then a couple months later things settle down because you're not getting headlines like you used to get. It's during that critical phase that application availability drives attention."

Unlike Apple, which launched the App Store along with the iPhone 2.0, Palm did not send out invitations to a select group of beta developers until more than a month after the Pre launched in the U.S. on June 6. And the company doesn't plan an open developer release until September.

While currently still in beta, Palm's App Catalogue has a little more than two dozen available applications to download compared to Apple's more than 65,000.

The volume of applications in Apple's store makes Palm's offerings look, well, inconsequential.

But according to Palm, rolling out the device first and then slowly easing in the developer community was the company's plan all along. What they hope is the strategy will help iron out any major programming issues before a full public launch.

"As you can see, we're taking a very deliberate, methodical, thoughtful approach to [expanding the App Catalogue]and working with the developer community," Katie Mitic, Palms senior vice-president, product marketing said in a phone interview Wednesday.

"It was important for us to scale this program ... to ensure we're doing it right. WebOS is a completely new platform that was shipped for the very first time. We wanted to get our phone and that platform out to end users as soon as possible."

The Palm developer kit - what developers use to create apps - does have some advantages. The tool the company has given to developers are all based on Web developing - HTML, CSS and Javascript - which means when it does enter full release, developers will already have the programming knowledge to create apps for the device.

"We get to target an extraordinarily large developer base," Ms. Mitic says. "There are over 10 million Web developers worldwide today. They get to use the technology they normally use to do their jobs. That was a very deliberate decision."

Still, Palm is in a Catch-22 situation.

"For an Apps store to be successful, developers are needed," writes Gartner analyst Ken Dulaney in an e-mail to Globetechnology. "For developers to be attracted, they must know a) that there are lots of target devices to sell to and b) that the app store is advertised. ... The apps store for Palm is still a work in progress. And being a small company they have challenges to promote."

But the big question is, does the lack of apps make the phone less appealing? Some consumer will think so but I don't. Not yet, at least.

One thing people have to consider is Apple's head start in the category. The iPhone has been out for more than two years (June, 2007) giving developers quite a bit more time to work with the device's OS before version 2.0 launched along with the Apple App Store in July, 2008. Research In Motion, as well, had the luxury of an established OS with which to develop their app store.

Palm had few choices in how to conduct their rollout considering developers had no access to WebOS. For the time being the company is controlling their product (some say too much) by trying to ensure what users do find puts quality over quantity and their fare of high-quality apps meet key needs for the average Pre user.

And generally, that's what users will find on the Pre App Catalogue. Currently the store covers the basics with weather, movie, restaurant, news, Google and Twitter apps. Palm said Canadian-focused apps will be available, such as one from the Canadian Press, which is launching Thursday with the Pre. As well, apps such as Yelp, a local directory of restaurants and shops and services, will include Canadian content. Palm says there are more apps in the pipeline that will appeal to Canadian, but wouldn't provide details.

And, over time, more and more will become available. Six months from now, I suspect the burden of the app Albatross will be lifted from the Pre, which will make the device much more of an iPhone contender than it's seen as today.

Palm's new do-it-all smartphone Globetechnology editor Michael Snider shows off some of the features of the Palm Pre

The Palm Pre launches Aug. 27 on Bell Canada's network and will cost $599.95 without a contract and $199.95 with a three-year contract.

Bell is offering three price plans for the Pre - $45, $60 and $100. (see PDF). Below I've complied a few user scenarios that give you an idea of how much you'll have the shell out for certain plans.