Sprint Announces $100 Credit with New Activation of Palm Pre

UPDATE: After just a few hours, Sprint has decided to pull the $100 credit offer. Saying that it was put into the system in error...

Today Sprint has announced all  new Sprint customers purchasing a Palm Pre on a new two year contract will receive a $100 service credit instead of a cash or rebate. Although this is not a additional rebate or cash in hand, you will receive a credit of approximately $33.33 per month for three months on your Sprint bill. The price remains $199 with a $100 dollar mail-in rebate if you sign up before before October 31, 2009.

While some analysts said the offer could help boost sales, Piper Jaffray's Chris Larsen said that the discount likely means Sprint is having a tough time adding new customers.

"We believe that the new promotion could indicate that net additions have been trending lower than the company expected for the third quarter," Larsen said in a research note.

Comments

[mjh]

I'm confused. So, out the door, the price is $299.

Possibilty 1)
Then there's a $100 mail-in rebate - reducing the net price to $199.
Then there's a credit of $33.33 for 3 months - reducing the net price again to $99

Or Possibility 2)
There's a $100 mail-in rebate until 10/31/09 - reducing the net price to 199.
After 10/31/09, the MIR goes away, and is replaced by 3 months of $33.33 credit - making the net price $199.

Which one? Or is there another possibility that I haven't considered?