Palm Pre vs. iPhone 3G S: Who’s playing catch-up now?

The weekend launch of the Palm (NASDAQ:PALM) Pre followed by Apple's (NASDAQ:APPL) introduction of the new iPhone 3G S has the industry taking sides and placing bets on which device will be more successful. What's equally important, however, is which device will be more influential. The iPhone has been the icon to which all other mobile handsets, applications and services have been compared, but that could be starting to change, as Palm's Pre is proving to be a device equally worthy of the spotlight.

According to Sprint (NYSE:S), the Pre's much-hyped launch this weekend saw a record sales debut for the carrier, although it declined to provide any specific numbers. Sprint said it sold out of the device in most of its locations and is working quickly to replenish stock to meet demands.

Apple's WWDC keynote, on the other hand, gave the audience everything that was rumored but little more, said Josh Martin, analyst with Yankee Group. "For once it seems as if Apple was solely playing catch-up with the competition," Martin said in an e-mailed commentary. Independent telecom analyst Jeff Kagan agreed that while the new iPhone is faster and will have more features, it's not a new device, and the titillation of years past is largely absent.

"This new version of the iPhone is not that advanced compared to what is in the marketplace already, and the competition is really hot this year, forcing Apple to share the headlines," Kagan said in a research note. The iPhone used to have the marketplace to itself, but now it's suffering from "what's next" syndrome — the newness is over, Kagan said.