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  Strange Allies: Palm and Apple Go Up Against Microsoft
Time: 00:36 EST/05:36 GMT | News Source: NewsFactor | Posted By: Robert Stein

Palm's struggles in 2001 mirrored Apple's downward spiral in the mid-1990s. Pressured by intense competition from Microsoft, Palm decided to license its operating system to startup Handspring and sundry other manufacturers, including Sony. The unintended result in both Palm's and Apple's cases was a cannibalization of sales rather than an expansion of the platform's market base. While Handspring and Sony were able to invest resources in developing innovations beyond a basic model, Palm was left to oversee both operating system development and hardware revisions.

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#1 By 135 (208.50.201.48) at 2/6/2002 2:00:18 AM
I can't believe Palm is so blatantly stealing Microsoft's innovation! i.e. seperate companies developing software and hardware.

It might work for Palm, but I think they need to develop an upgrade revenue stream for software from existing Palm users. :)

#2 By 4209 (163.192.21.3) at 2/6/2002 8:34:57 AM
To add on to Soda, they also needed to innovate more. That and there stupid CEO pushing there new products last year when they still had a significant stock of the old model, that did not sell as well after they announced the new m series of palms. That and there prices are higher than Handsprings could have hurt them as well.

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