Palm poised to unveil much-needed OS
Published: 15 December, 2008
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With a string of poor financial results behind it, Palm looks one of the most vulnerable vendors to the downturn, especially as it is still waiting for a much-needed upgrade for its high end ranges.
While its low end Centro has sold well this year, it has very low margins, and Palm badly needs to reassert itself in its core enterprise space, where its flagship, the Treo, has been flagging against rivals from RIM, HTC and even Apple. Palm supporters will be relieved, then, by reports that the long awaited new mobile OS - which will be Linux-based and so should open up new opportunities to lure developers - will be unveiled at the Consumer Electronics Show on January 8.
Speculation that the new Palm OS is only weeks away was sparked by the invitation to the company's press conference at the huge show in Las Vegas, which said: "Come to CES to see all the Palm New-ness you've been waiting for."
In a research note, Avi Cohen of Avian Securities wrote: "We believe the introduction of the new OS (and likely the speculation/hype leading up to it) is likely to help sentiment around Palm shares near term." However, while confidence in Palm may receive a much needed shot in the arm, the real test will be the launch of the first handset to use the new OS, and its performance among developers and consumers. The first new generation smartphone should appear before mid-year, initially with a 3-6 month carrier exclusive in the US, and then with roll-out to other countries and US operators before the holiday season of 2009. This still entails a dangerous hiatus period, amid a downturn, for Palm to survive, plus the prospect of high launch and marketing costs if its new devices are to make an impact in the overcrowded smartphone field.
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