Full Description

Palm, Inc. (Palm), incorporated in 1992, is a provider of mobile products for individual users and business customers worldwide. Palm’s products for consumers, mobile professionals and businesses include Palm Pre, Treo and Centro smartphones, as well as software, services and accessories. The Company sells its products in two product lines: smartphones and handheld computers. Palm products are sold through select Internet, retail, reseller and wireless operator channels worldwide, and at Palm online stores.

Smartphones

The Company’s smartphones provide a range of productivity tools, and personal and entertainment applications. Functionality and features found in all Palm smartphones include support for various mobile telecommunications standards used to transmit voice and data; wireless data applications, such as e-mail, messaging and Web browsing; wireless communication capabilities, such as Bluetooth and/or wireless fidelity (Wi-Fi); multi-media features and productivity software; instant-on, one-touch access, and non-volatile flash memory that protects stored data. Palm’s smartphones provide support for various mobile telecommunications standards, such as Interim Standard 95/code division multiple access (CDMA)2000/evolution data only (EvDO) or global system for mobile communications (GSM)/general packet radio service (GPRS)/enhanced data GSM environment (EDGE)/universal mobile telecommunications system (UMTS)/high-speed download packet access (HSDPA). The Company distributes its smartphone products to wireless carriers in markets worldwide. In some cases, Palm customizes its devices to meet individual carrier needs. The Company also sells non-customized versions of some of its smartphone products through other wireless carriers and distributors worldwide.

Palm webOS

The Company has introduced Palm webOS, a standards-based operating system (OS) designed exclusively for mobile use. Palm webOS is designed to run on a variety of hardware form factors. Palm webOS supports a number of core capabilities, such as contacts, calendar, tasks, memos, phone, browser, e-mail, messaging, camera, photo viewer and audio/video player. In conjunction with Palm webOS, services are offered, which are delivered over-the-air, including software updates, back-up and restore of certain data, remote erase of a device and access to the applications catalog. Palm webOS has various functionalities. Under Palm Synergy, the user’s calendar, e-mail, contacts and messaging applications each offer a synergy view, which shows aggregated information pulled over-the-air from different locations, including corporate applications, such as Microsoft Office Outlook, and Web sources, such as Google and Facebook. Applications multi-tasking allows the user to keep multiple applications open at the same time, and to navigate from one to another. Universal search automatically narrows a user’s typed search and offers results from both the device and the Web. Unobtrusive notifications is a scrolling notification bar that lets the user decide to address or dismiss incoming e-mail, messages, calendar items or phone calls.

Palm webOS was designed as an open platform to enable third-party developers to make their applications available to Palm users. Palm webOS applications are written using Palm Mojo, an application framework based on hypertext markup language 5 (HTML5), cascading style sheets (CSS) and JavaScript standards. These standards are familiar to an ecosystem of application developers, allowing them to develop products and services to complement Palm webOS. The applications catalog is an on-device application library, from which users can download Palm webOS applications over-the-air onto their device. The Company is still developing the full functionality of the applications catalog.

The Palm Pre is the first Palm smartphone to run on Palm webOS. The Palm Pre integrates Palm webOS software and Palm’s internally designed hardware to optimize device performance and the user experience. Some of Palm Pre’s main features include high-speed connectivity; a slide-out QWERTY keyboard; a 3.1-inch touch screen; a gesture area, where users make simple, intuitive gestures for navigation; a high-performance Web browser; a three-megapixel camera with light emitting diode (LED) flash; eight gigabyte (approximately seven gigabyte available to user) of internal storage; a MicroUSB connector with universal serial bus (USB) 2.0 Hi-Speed; proximity and light sensors, and an accelerometer, which automatically orients Web pages and photos to the user’s perspective. The Palm Pre was made available to consumers through Sprint Nextel Corporation in the United States in June 2009. Palm Pre accessories, such as the Touchstone charging kit, vehicle power adapters and carrying cases are also available for purchase.

Windows Mobile OS

Palm targets certain business customers with its Windows Mobile-based Treo Pro smartphone, which was introduced in August 2008. The Treo Pro provides an integrated Palm and Windows Mobile 6.1 solution for businesses that have standardized their operations on Microsoft software. The Treo Pro offers Microsoft Direct Push Technology, Microsoft System Center Mobile Device Manager, client support and access to applications available for Windows Mobile. The Treo Pro also offers Palm-designed enhancements to the Windows Mobile platform, including user-interface enhancements, a voicemail indicator, integrated global positioning system (GPS) and one-button access to e-mail, calendar and Wi-Fi. The Treo Pro is available through a range of wireless carriers and distributors worldwide. An unlocked version of Treo Pro is available for sale through Palm.com and other retail outlets. Treo Pro add-ons and accessories, such as memory expansion cards, micro USB cables and Treo Pro Stylus packs are available for purchase. A variety of third-party Windows Mobile-based applications are also available for download through Palm.com and other channels.

Palm OS

The Centro smartphone, introduced in September 2007, is the last Palm smartphone to run on the legacy Palm OS, which was licensed by Palm from ACCESS Systems Americas, Inc. (formerly PalmSource, Inc.). This device continues to be available for sale through a range of wireless carriers and retail channels in the United States and various international markets. Centro add-ons and accessories, including wireless headsets, power chargers and desktop cradles are also available for purchase. A variety of third-party Palm OS-based applications are also available for download through Palm.com and other channels.

Handheld Computers

Palm offers ongoing customer support to owners of its Palm handheld computers. A limited number of Palm handheld computers continue to be available for sale through various retail channels and distributors. However, the Company no longer manufactures these devices.

The Company competes with Apple, Asustek, High Tech Computer, LG, Motorola, Nokia, Pantech, Personal Communications Devices, Research in Motion, Samsung and Sony-Ericsson.