Palm opens SDK while RIM reports strong quarter

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Palm opens SDK while RIM reports strong quarter

By CAROLINE GABRIEL

Published: 3 April, 2009

READ MORE: Palm | RIM

Palm and RIM are always fighting a rearguard action against more widely used platforms, as they try to break out of their enterprise niches, but both had positive news this week. Palm has opened up the software developers kit (SDK) for its new WebOS, while RIM, despite doubts about how far its new applications store will appeal to consumers, has announced strong quarterly results.

Palm said at this week's Web 2.0 Expo that the Mojo SDK will now be available to third party developers, and this should give the world a clearer idea of the strengths and weaknesses of the company's new Linux-based software platform, WebOS, beyond the vendor's own demos. WebOS will appear first in the upcoming Palm Pre, the firm's make-or-break challenge to the iPhone and other smartphones.

Palm has come under fire from loyalists for abruptly killing off its old PalmOS system, but announced some links to its past, which may go some way to placate traditionalists. In particular, it will offer an emulator that will let WebOS users run their old Palm applications.

There will be no charge to download the SDK, and developers will not have to join any kind of Palm developer association.

Over at RIM, which opened the doors of its BlackBerry Application World this week, there are signs that a smaller smartphone player can still make an impact on the giants with sufficiently eye-catching handsets. The launch of its 3G phones, Bold and Storm, helped boost fourth quarter results, with revenue up 84% year-on-year to $3.46bn and net income up 26% to $518.3m and 90 cents a share. This was ahead of analyst estimates of $3.4bn and 84 cents a share.

Co-CEO Jim Balsillie said in a statement: "Looking ahead into fiscal 2010, we see exceptional opportunities for RIM and its partners to leverage the investments and success of the past year to continue growing market share and profitability." The company reported it gained a net 3.9m new BlackBerry accounts and shipped 7.8m devices in the quarter. Storm sales were particularly robust, as well as Latin American shipments.

In another small sign that the handset market may soon bottom out, or at least have a firmer handle on the year ahead, RIM issued a forecast for the current quarter - something most phonemakers have recently refused to do, citing lack of visibility amid economic turmoil. RIM expects to post revenue of $3.3bn to $3.5bn in its fiscal first quarter, which ends on May 30, with earnings per share between 88 and 97 cents. It is forecasting gross margins of 43%-44% and a subscriber base of 3.7m to 3.9m.