PalmOne in bed with Microsoft? Windows Mobile Treo 650 coming?

Posted on Nov 2, 04 09:45 AM PDT

A research note, from Needham & Co. mentioned that PalmOne was working with Microsoft to make the Windows Mobile platform available on the Treo 6xx line of phones. This would be a blow to PalmOne's sister company PalmSource. PalmOme is the company developing hardware, while PalmSource is creating the popular Operating System. The two companies were split so that they can each focus on their specialty.

This is not the first time that the couple Treo+Windows is mentioned. However, this is serious enough to make the PalmSource stock price tumble.

The big winner would be microsoft, who is actively looking for a killer data-enabled device. As of today, the closest contender is the BenQ P50, but it is not going to be sold anytime soon. PalmOne in exchange would get additional funding to develop future devices.

PalmSource, would be in pretty bad shape, as the PDA market erodes further. PalmOne took the decision to focus solely on Smartphones a year ago and Microsoft might be seen as a way to get software that's tightly integrated with Exchange Server, for example.

[Cnet]

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