Treo Features Microsoft OS

RED HERRING reports on Palm and Verizon's launch of the Treo 700, which will be the first Palm Treo smartphone to use the Microsoft Windows Mobile OS in an attempt to attract more enterprise customers. The handset will run Windows Mobile 5.0, have 128 megabytes of memory and is priced at $399.99 with a two-year Verizon contract.

Gartner analyst Todd Kort said, "“The development tools associated with Windows mobile are more robust." He noted Windows Mobile offers "better support [for] third-party programs like corporate applications." Kort added, "Palm has developed a lot of software to layer on top of the Microsoft OS."

Regarding other devices that offer computing on the go, such as 3G enabled laptops, and whether they will cannibalize sales from each other, Current Analysis analyst Samir Bhavnani said, "Absolutely not. There ha’ve been threats from smaller devices, but they don't have the storage, processing power, or ability to run applications like a laptop."

Added Mr. Kort, "It's evolving so that the BlackBerry or Treo supplements the notebook."