When Palm, Inc. spun off its software division as PalmSource several years ago, the company became strictly a hardware manufacturer. Palm maintained a large staff of software developers. But their efforts were limited to adding features to software created by PalmSource and Microsoft.

Two months ago, however, Palm bought back from PalmSource (now a division of Access Co.) the rights to develop the Palm operating system in a deal valued at $44 million. Last week Palm invested in former Apple Computer software engineer, Paul Mercer, and two of his colleagues. Mercer, left Apple in 1996 to start Pixo Inc., and was responsible for the system used by Apple for its iPod interface.

The large investment by Palm in taking control of the Palm Garnet operating system and in Mercer suggests the company may be launching a massive assault on rival smartphone manufactures Apple, HTC, Samsung and Nokia by developing a next generation operating system that it will control exclusively. According to the New York Times, the move is a direct reaction to Apple's announcement of its upcoming iPhone.

Related Links

Palm Assumes Control of Palm OS Garnet

New York Times: "Palm Responds to iPhone"

Purchase the best smartphone on earth.

Join the Treo Discount Club and save up to 60% on all your store purchases.

Verizon Finally Gets the Centro - Jun 12, 2008

Mobius 2008 - May 17, 2008

Palm Centro gets City Chase participants to finish line - May 01, 2008

Palm launches Centro in Columbia with Comcel and Movistar - Apr 18, 2008

Viva el Centro - Apr 07, 2008