The Street is repeating Credit Suisse speculation that Sprint may offer the Pre when it is introduced (c'mon already) for as low as $150 vs. the anticipated $199 or $179. (Any smarphone over $200 now that requires a contract is DOA.)

While this subsidy would potentially cost Sprint a great deal here are the benefits of such a move as I see them:

• Greater PR and "buzz" upon launch (enabling them to reduce their formal marketing spend perhaps)
• Increased existing Sprint customer upgrades (including to data plans) to take advantage of the Pre
• Fewer defections from Sprint, which has been losing 1M subs per quarter of late
• Some switching from other carriers to Sprint

In the latter category I don't think Sprint will see something as dramatic as what the iPhone has done for AT&T but it may see some new customers. The other benefits (retention, upselling) would probably net out profitably for the carrier, although I don't have access to any of their internal numbers.

One of the other great benefits of the Pre for Sprint is the spark it delivers to the brand. The Sprint brand has been in decline over the past couple of years, notwithstanding their marketing efforts. The Pre and forthcoming Android phones have the capacity to change that. 

I'd love to see a Pre for $150, but we'll have to wait to see if the company has the nerve to go that low.