Palm Poised for a Comeback On Booming Smartphone Sales? (PALM, MOT, NOK)

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Includes: GOOG, NOK, PALM

Last week, we noted that at least one analyst believes Palm will benefit from BlackBerry maker Research In Motion's courtroom woes. Today's Wall St. Journal (sub. req.) provides more basis for the bull case for Palm. Key bullet points from the article:

  • Palm's latest Treo smartphone -- the 700w (pictured)-- runs the more popular Windows Mobile 5.0 OS. This is a break from past models, which ran Palm OS, turning off many who were looking for a unified platform across their PC and phone. The Treo 700 should begin selling next month.
  • Verizon Wireless will aggressively push the Treo 700 in its partnership with Palm.
  • Competition: Motorola's Q smartphone and Nokia's E-series devices will be stiff competition for Palm, but the market is booming enough for all parties to enjoy. According to IDC analyst David Linsalata, 57.1 million smart phones will be sold this year. The figure will balloon to 181 million by 2009.
  • Low-cost Treo forthcoming? From the article: "Palm has long maintained a desire to put out a low-cost version of the Treo but has declined to provide any details. ThinkEquity's Mr. Perez-Fernandez believes Palm will release one next year, providing a revenue stream few are anticipating. 'Palm will be able to address multiple markets at once,' he said."

PALM 1-yr chart:

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