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Palm To Focus On WebOS At Windows Mobile Expense

9/18/2009 02:26:31 PM Eastern

Sunnyvale, Calif. - Palm
will concentrate its future development efforts on WebOS-based PDA phones and
will no longer develop phones based on the Windows Mobile OS, president/CEO
Jonathan Rubinstein said.

During a conference call with analysts yesterday, Rubinstein
said future engineering efforts
will focus on the WebOS operating system, created by Palm and appearing in the Palm
Pre and Pixie. The company wants to focus on WebOS to control the customer
experience from operating system to services, he explained.

The
announcement coincided with the release of first-quarter
2010 results
for the quarter ending Aug. 28. During the quarter, Palm sales
fell to $68 million, from $86.7 million in the previous quarter, and losses
grew sequentially to $161.1 million from $91.5 million, and from $39.5 million
during the year-ago quarter. The company also said it shipped 823,000 PDA
phones during the quarter, up 134 percent from the previous quarter but down 30
percent from the year-ago quarter.