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May 20, 2009

Cell-Phone Makers Hope for a Blockbuster Summer

The hype machine started months ago. Opening weekends are upon us. High up in executive suites, the hope is that this summer’s new releases will cause lines to snake around the block.

The cell phone industry in the United States — one of the world’s largest markets — looks a lot like the movie industry nowadays. Some highly anticipated phones — including the Palm Pre, an updated iPhone and new phones using the Android operating system from Google — have focused the industry’s efforts on the crucial months between the Memorial Day (May 25) and Labor Day (Sept. 7) holidays.

In the past, “nobody gave a darn about mobile phones — they weren’t headline grabbers,” said Charles Wolf, a cell phone industry analyst with Needham & Co. “This summer will be really interesting. It could be potentially the most exciting time in this market.”

The season’s releases began last week, when T-Mobile announced the introduction of the Sidekick LX and AT& T unveiled the Samsung Jack, ballyhooing it as “another hit crossover smartphone in the tradition of the Blackjack and Blackjack II.”

But the season’s most compelling phone drama will start the first week in June, when Sprint will begin selling the Palm Pre, people briefed on the company’s plans said.

Palm, a once-iconic device maker that has fallen on hard times, has been hyping the Pre for months as an iPhone killer, but the company has given few peeks to analysts and reviewers. Analysts say the stakes are high for Sprint Nextel, which has exclusive rights to the phone in the United States, but even higher for Palm, which is based in Silicon Valley.

“This is make or break for Palm,” said Mr. Wolf, noting that Palm, also the maker of Treo and Centro phones, lost about $98 million in the last quarter, consistent with…

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