PalmSource has hit a rough patch. Its flagship product, version 6 of Palm OS, named Cobalt, has not done as well as PalmSource had hoped. It has only one significant licensee - palmOne, whose Treo products still run version 5. Rumors abound that the Treo will soon support a Microsoft platform. And PalmSource has lost its lead in market share for PDA operating systems to Microsoft. Given the limited licensing potential of Cobalt, this announcement is one of the few moves PalmSource could have made.
December 15, 2004