Omnipreset news of the unending march of discounts for the Peek hardware are simply not encouraging. Besides discouraging earlier adopters, it doesn’t bode well for the demand for Peek’s services. If price is the nexus between supply and de.mand, either supply has gone through the roof, or demand has fallen off a cliff.
Old hardware is in the discount bin at Target, new basic hardware is knocking on the toy category ($20), and the premium product has taken a 25% discount to $60. I know that the business model runs on the monthly service charge, so the hardware is really meant as a loss leader, but if price is a useful proxy for demand, the discounting suggests that Peek is having trouble expanding their user base in the face of tepid demand. Especially considering the aggressive pricing of the prepaid 3 month and yearly subscriptions.
Looking at my own situation, I pay $30 for voice and $10 for limited messaging. If I get that $100 Blackberry Curve I know someone is selling, unlimited text and data is only $35. For a big data and text upgrade, I end up paying $15 more a month. Hardware-wise, we’re talking a mere $40 premium over the Peek. $180 +$40 = $220 in the first year, which seems like a lot, but you have to remeber that you’re carrying one less device too. $0.60 a day to own a Blackberry vs. Carrying around a phone AND a Peek. This sort of math does not bode well for the future of the Peek.
Which is why they are trying to lock in users now, I suspect. Again, looking at my situation, you don’t just take the phone price into consideration, you have to add the price of the service and hardware I am abandoning. $120 at this point. $340 premium in the first year to switch might still be less than $1 a day, but we’re getting dangerously close to talking about real money here.
Personally, I’m not switching. I plan on upgrading to a Samsung camera phone, so I always have a good camera on me even if I forgo the Nikon occasionally. So the Peek fits into that plan nicely. The game changer would be if there was tethering with the Blackberry. Or if Peek went out of business.
