Is Palm Toast?

Palm is dying. That’s the contention of one blogger who says the Pre and the Pixi are doing nothing to return the company to its glory days.

Earlier this year, a prominent investor claimed that the new smartphones would cause iPhone lovers to throw out their beloved Apple product and embrace what is new. But that didn’t happen, argues Mark Gimein of The Big Money. Gimein writes that, over the past three years, the iPhone’s gains have actually taken the biggest bite out of the Palm Treo, rather than BlackBerry or Windows mobile phones, as many had thought.

It was just 2006 when Palm held one-third of the U.S. smartphone market in its hands, according to ChangeWave. It’s dropped to just 7 percent in 2009, despite the introduction of the Pre and the Pixi. The iPhone sits at 30 percent.

For those reasons and more, Gimein writes that Palm “is toast.” Calling the original Palm Consulting a great success story of the mid-90s in Silicon Valley, he says “it was also a company beset by so many errors and miscalculations that it is a wonder it has managed to survive even as long as it did.” Palm and its “ownership genealogy” has been too complicated, he says, to have a long, successful run.

Add all of that to the Gartner research which estimates Palm’s webOS will claim barely more than 1 percent of smartphone share around the world by 2012, and you have a recipe for demise, writes the blogger.

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