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Is Palm in safe hands?
Talk, Graham Bower, 09 January 1999
In Santa Clara, California last week, developers for the popular handheld Palm computer gathered for PalmSource 99 to hear a less than insiring address from the Palm powers that be. It's been widely rumoured that 3Com intends to sell off Palm, and there's been much speculation as to its likely new owner.


The Palm computer is a pluckly little product, that has carved a niche for itself in a highly competative market. Indeed, it's little short of insirational to see the tiny Palm computer hold out against the intense competition of Microsoft, with its Windows CE (Wince) range of products. But isn't this a story we've heard before? First Apple were taken down, then Netscape (with many other smaller companies falling along the way who also couldn't stand up to the might of the Microsoft steamroller). Is there really a future for Palm if it's up against the financial muscle of the Redmond giant?


Well the short answer seems to be "yes". Wince has been around for some time now in the handheld market, and despite making some inroads into the sector, it still has not manage to topple Palm from the top spot. Indeed, some developers, perhaps becoming frustrated by Wince's slow progress, are deserting the platform altogether. Philips recently announce that they would cease developement of their Wince-based "Nino" device.


So it would seem that Palm have won this battle, but it's still early days in the war of the hand helds. The future is convergence. Not PC & TV or Voice & Data this time, no. In this sector, all eyes are on the convergence of the handheld computer and the mobile phone. Palm have already made a small, but significant step forward in this direction. They've teamed up with US mobile phone manufacturer Qualcomm to develop the pdQ smartphone, which nattily combines a regular mobile phone with a Palm interface. But this is just the beginning. Their recently announced partnership with Nokia seems set to launch further convergent innovations. Microsoft are once again playing catch-up. Their recently announced partnership with British Telecom hardly sounds as compelling.


Palm Computing are positioning the Palm platform as a user interface that can sit on top of any number of different chips and operating systems. The plan seems to be to make the platform as adaptable as possible, opening it up to all kinds of developers, to ensure it is ubiquitous. Only then can they be confident in seeing off the Microsoft threat. This strategy seems sound. Palm are, afterall, in a very different position to the likes of Apple. When Apple opened up the Macintosh platform to third party developers, it found itself unable to compete with them on price and value. They lost money hand over fist, and only returned to profitability when they scrapped licensing alltogether. The difference for Palm is that they are the market leaders in their sector. They have less to lose by allowing everyone to have a bite of their cake.


With this in mind, it's a little alarming to hear that Apple are once again considering purchasing Palm Computing from 3Com. Naturally Palm would seem irrisitable to Steve Jobs. Imagine the handy handheld in a fancy, fruity coloured polycarbonate case with a big Apple logo on the cover. And imagine the media circus that would surround the launch of an iPalm. But stop and think - Apple are used to fighting the entrenched, protectionist battle of the underdog. Their whole culture is based upon an integrated hardware and software strategy, carving out a locked-in niche for themselves against the overwhelming might of a larger competitor. They will hardly feel comfortable with licencing their new toy to third parties, and the will feel even less comfortable about being the winners for a change. Steve Jobs had better think long and hard before getting out that checkbook! Top Home