Palm's new Treo smartphone will use Windows
mobile software from Microsoft.
Bill Gates said that the Windows Treo device
would serve as his primary mobile phone.
September 27 2005 - In a long-expected announcement Palm
CEO Ed Colligan said Monday that the Microsoft Windows Mobile
5.0 operating system was chosen because it offered features
that PalmOS could not.
Colligan stood beside former rival Microsoft chairman Bill
Gates, and Verizon Wireless chief executive Denny Strigl
in San Francisco.
The decision is a victory for Microsoft Corp. and a setback
for the company Palm spun off to develop and sell its original
Colligan said the PalmOS will remain part of Palm's future,
but industry insiders predict a successful Palm-Microsoft
partnership could mean that palmSource will lose its most
significant and oldest customer.
Denny Strigl of Verizon Wireless, Bill Gates
of Microsoft, and Ed Colligan of Palm (L-R), after announcing
an alliance among the three companies with the Treo smartphone
For more than year, analysts have expected Palm to team up with
Microsoft and effectively snub palmSource. The two were once part
of the same company until management decided in 2003 to break
them up so the software division could sell PalmOS to other handheld
After the split, Palm agreed to pay palmSource a licensing fee
for the PalmOS and became its marquee client.
Ross Rubin, director of industry analysis at NPD Group says the
Windows Mobile platform offers better support for such things
as video and photos. It also offers superior call management.
"One of the criticisms levied at PalmOS is that it isn't
great for managing voice applications. Microsoft treats voice
as a first class citizen."
In 2000, Microsoft had about 11 per cent of the handheld market.
By 2004, the Redmond, Wash.-based company had overtaken palmSource.
In the second quarter of this year, about 56 million Windows smartphones
were shipped compared to 48 million phones with the Palm operating
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