palmOne Considering Many Different Operating System Options

Earlier this week, a stock analyst revealed that palmOne is looking into the possibility of using Microsoft's Windows Mobile for Smartphones on an upcoming Treo smartphone, rather than the Palm OS. Now, it appears that this company is considering a wide variety of operating systems.

According to CNet News.com, in addition to checking out Microsoft's operating system for smartphones, palmOne has investigated the possibility of using Windows Mobile for Pocket PCs.

It has also considered using Linux on some of its products.

Not All that Shocking

According to the earlier report, Needham & Co. is "virtually certain" that palmOne is going to release a Treo running Windows Mobile for Smartphones. However, palmOne has released a statement saying that the Needham report was based on a misunderstanding.

However, the same statement goes on to say, "the company is open to evaluating products using additional operating systems if doing so would grow the marketplace or otherwise meet customer needs that currently are not addressed."

This is not a new position. palmOne has said before that it isn't totally committed to any single operating system. One of the reasons palmOne split off from PalmSource is to make it easier to use operating systems other than the Palm OS.

Hard on PalmSource

The news the palmOne is considering other operating systems has been hard on PalmSource, the company that is responsible for developing and licensing the Palm OS.

The price of PalmSource shares have dropped almost 20 percent this week. This isn't surprising, as palmOne is by far its largest source of licensing fees.

However, it should be made clear that there hasn't been the slightest hint that palmOne is going to drop the Palm OS entirely. Instead, it is considering the possibility of broadening its product line to include handhelds and smartphones running other operating systems.

palmOne has a contract with PalmSource through 2006 that includes a $40 million minimum annual commitment.

palmOne's statement on this issue says, "We have often said that the Palm OS today has the best combination of power, ease of use, user interface, and flexibility to innovate on top of the OS."

Related Links

• Sony May Be Considering Pocket PCs
• palmOne Finally Officially Announces the Treo 650