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Mon, Dec 15, 2008 12:14 EST

Topic: InfrastructureBlog: Mobile WorkHorse
Current Rating: |
Is it too late for Palm to pull one last trick from its hat? The last couple of years have been particularly bleak for handset maker Palm, the early leader in the smartphone market that fell from grace and lost momentum to rivals RIM and Apple. For Palm, failed product launches, shrinking market share, plummeting stock prices and staff cuts have all contributed to its slow demise. However, Palm's not throwing in the towel just yet: It has been six years since the company's last handheld OS refresh, but Palm will reportedly be showing off its next generation OS, unofficially dubbed "Nova," along with a new device, in Vegas at the Consumer Electronics Show (CES) on January 8.
But will this prove to be Palm's last hurrah?
The company sure doesn't think so. According to Jon Rubenstein, Palm's executive chairman in charge of product development, who spoke with BusinessWeek.com on the subject, there are three good reasons why Palm's still in it for the long haul: 1) Palm is a highly recognizable brand; 2) it has close ties with wireless carriers; and 3) it has a history of making cutting-edge products like the Palm Pilot PDA and Treo smartphone.
Rubenstein says Palm latest strategy hinges upon making products that cater to the audience that falls through the cracks between Research In Motion's business-oriented BlackBerry and Apple's consumer-minded iPhone. In his words, Palm's aiming for the "fat middle of the market."
Frankly, this all sounds like marketing-speak to me. Sure, Palm is a recognizable brand name; it was once an industry leader. But contrary to popular belief, consumers aren't stupid, and they now associate the Palm brand with the company's stagnant product line. So brand recognition may not be such a good thing in this case.
Also, Palm may have close ties to wireless carriers, but it's all about dollar signs when the hammer drops, and as such, those very same carriers will likely be hesitant to embrace an additional software platform—and the associated costs—until they're sure customers will do the same.
As for Palm's track record of releasing successful devices like the Pilot PDA, and both the Treo and Centro smartphones, this is also the same company that unveiled, hyped-up and then abruptly killed the Foleo, a smartphone companion product. So the company's track record's not exactly spotless.
Finally, Palm's strategy as described by Rubenstein isn't particularly impressive either. Especially since both RIM and Apple are, in effect, attempting to bridge the very same gaps. RIM, originally a purely business-oriented company, has recently release a variety of devices for business users (the Bold), multimedia-centric consumers (the Storm) and everything in between (82xx Flip, Curve 89xx and so on).
Apple, too, has broadened the appeal of its consumer-centric, first-generation iPhone, making it more business-friendly through improved Microsoft Exchange support.
Bottom line: Nova and the accompanying device had better be damn special, because Palm's not only competing with RIM, Apple, Nokia, HTC, Motorola and the other handset heavies at this point, it's competing for public hearts and minds. If the company doesn't wow us with this next operating system, I think it's safe to say goodbye to Palm, at least as we know it—for good.
Regardless, I'll be in Vegas next month for the show, and getting my hands on a Nova-powered device is atop my list of priorities. I'll be sure to report my findings, good and bad, right here in the Mobile WorkHorse blog.
AS
I respect your opinion but there are millions of Palm owners out there that aren't impressed with Apple or Rim. I would've kick my Treo to the curb long ago if it weren't for all those special apps I've purchased over the years. Apple is still run by steve jobs who didn't exactly WOW the people at Verizon. I know Treo's are old tired devices working in the slow lane of technology. BUT AT LEAST THEY WORK and at the end of the day that's what it's all about. I need at least 1 phone out of the three I carry TO WORK.
Hey Zero,
I'm not really sure what you're saying.
Regardless of whether or not Palm owners are impressed with Apple or RIM, the fact remains that they are the number one and two smartphone vendors in the United States, respectively--numbers two and three in the world.
Palm's not even close, and that's for a reason: A lack of innovation. So while the apps you purchased years ago still work on your old Treo, there are plently of brand new apps for devices like BlackBerrys that very likely do the same things as all of your apps...and more.
Also, are you saying that BlackBerrys don't "work." From the context, I'm assuming you mean Treo are very business friendly. For the most part, I'd agree. But from where I'm standing, BlackBerrys are just as enterprise friendly as Treos--or more so.
Are you saying a BlackBerry wouldn't "work" for you? And if so, why not?
AS
The iPhone is awesome. So is the Blackberrys.Both have3 their strengths, but......they both have their #1 weaknesses in regards to capturing "the other guys' market".The iPhone has the lusciously large screen that I for one cannot ever depart with, once experienced.The Blackberry has the keyboard, which is a huge factor.The iPhone's keyboard sucks.The Blackberry's screen size, well.......come on now!
With all that in mind, I would LOVE to see something in the form-factor as the two machups in circulation.........preferably the sexier one drawn up by Twitter.
If Palm comes up with a machine like that,it's a homerun boys.End of story.
I'm hoping on something like that......and Ruby "suggested" something of the sort in pointing out the above matter, in his recent divulgings.
All speculation as yet but these fingers are crossed.
i have to agree with the author on this one. my first question is what Treo do you have because the 755 with sprint was terrible. my business partner constantly complains about his freezing up. & if you have purchased apps for your phone, you got robbed!! do you know how many free programs are available for Windows Mobile...countless. Palm is old, tired & played. they were too lazy & too stupid to stay up with technology resulting in now being at the back of the line. my guess is, that's where they stay.
Please read what Colligan has said in his press release. Palm is slotting the new Nova device as "prosumer" device between the iPhone and Blackberry. They will continue with WM devices for the enterprise space. The biggest features will be ease of web browsing and social networking (IM). With a $197 iPhone at Walmart, how much will the new Prosumer Nova device cost, $300? And is the iPhone inept at web browsing?
The new device is Linux-based and will likely come out with several apps (GPS for sure) out of the box. But this will not be Treo-like at all and will be something different. Walmart is going to promote the hell out of the iphone. Can Sprint stores compete? The jury is out. I think The new Nova-powered palm should be a $149 device, in this economy the price point is key.