Predicting the Pre's Price & G1 Goes to Europe

One issue that is critical to the Pre's success is its price. For all its beautiful design and functionality the more mundane consideration of price may determine how successfully it sells.

Precommunity speculates that it may be as much as $399 with a two-year contract. I doubt that it will be that expensive given that the iPhone is $199 and the G1 $179. A price that is 2X greater than these formidable competitors will dampen sales of the devices, which both Palm and Sprint need. 

I'm guessing it will come in around $200, which will likely be the new competitive price ceiling in the US for subsidized smartphones going forward. 

In Germany T-Mobile is selling the G1 Android phone for 1 Euro in a super-aggressive subsidy with a two-year contract. T-Mobile is rolling the phone out this month and next in most European countries. It has been available in the UK for several months. 

Samsung's Android phone is expected later this year in the US (Spint and T-Mobile). And the highly anticipated Android/G1 software update that adds a virtual keyboard is reportedly coming at the end of the month.

Separately a new survey found that many mobile phone buyers in the US and UK are very frustrated by the set up process and the complexity of many mobile phones.