* To sell Pre, new BlackBerry Storm, Motorola phones
* Verizon to have Android phones on its network
* Palm shares up 8.8 pct, RIM up 3.9 pct (Adds Palm comment on Twitter universal search, bylines)
By Sinead Carew and Franklin Paul
NEW YORK, May 28 (Reuters) - Palm Inc’s PALM.O iPhone competitor Pre got an unexpected boost on Thursday as No. 1 U.S. mobile service Verizon Wireless said Pre would be part of its upcoming device line-up, sending Palm shares 8.8 percent higher.
Palm is depending heavily on Pre to galvanize its business and regain market share from rivals such as Apple Inc (AAPL.O). Pre is also seen as key to helping stem customer losses at Verizon’s smaller rival Sprint Nextel Corp (S.N), which is launching the Pre exclusively on June 6.
Verizon, the No. 1 U.S. mobile service, will offer Pre in “six months or so,” company Chief Executive Lowell McAdam said during a conference webcast.
Verizon Wireless said its phone line-up would also include a new version of the touchscreen controlled BlackBerry Storm from Research In Motion Ltd RIM.TORIMM.O and a new BlackBerry called Tour. Also slated are devices from Motorola Inc MOT.N and phones based on Android, the Google Inc (GOOG.O) mobile system.
“Over the next six months or so you will see devices like Palm Pre and a second generation Storm” on the Verizon Wireless network, McAdam said. “You can expect to see us launch a steady stream of new devices from multiple vendors.”
Some analysts had worried that Palm was limiting Pre’s success by forging an exclusive agreement with Sprint, which lasts at least until year-end, as first reported by Reuters in February and confirmed by Sprint on Thursday. [ID:nN19369506]
As a result, UBS analyst Maynard Um said Verizon’s Pre news was encouraging for Palm investors. But the analyst predicted increasing competition in the advanced phone market, saying that Motorola “could be the wildcard in the smartphone race” as it has the potential to be most aggressive on price.
“However, visibility in an increasingly competitive market is still limited,” the analyst said in a research note.
Um also said he expects other new Palm phones based on the same operating system as Pre. For example Randall Stephenson, the chief executive of AT&T Inc (T.N), the No. 2 U.S. mobile service, said during a conference on Wednesday that his company would also like to sell Pre but he did not give a timeframe. AT&T uses a different network technology from Sprint.
The comments come ahead of Sprint’s long-awaited Saturday, June 6, launch of Pre and the expected announcement of a new iPhone from Apple in the week after that.
Top executives from both Palm and Sprint have said they expect Pre shortages around the launch due to strong demand. Palm said on Thursday that the device would include a universal search service that will let users to search everything from their phone contacts list to popular micro-blogging site Twitter or Web encyclopedia Wikipedia.
Palm said the device’s operating system, webOS, also allows Pre to synchronize with iTunes, Apple’s popular music software, so users can easily transfer music, photos and video to their phone.
McAdam’s announcement was also a boost for Motorola Inc MOT.N, which has been steadily losing market share and is pinning its hopes on the launch of a new line-up of advanced phones based on Android later this year.
AT&T is the exclusive U.S. provider for iPhone and derives much of its customer growth from the wildly popular and much imitated touchscreen device.
Verizon’s McAdam said that multiple device launches for the rest of this year would ensure his company is not be dependent on any one phone for keeping customers and winning new ones.
Verizon Wireless is already the exclusive U.S. carrier for the first BlackBerry Storm launched by Research In Motion RIM.TO late last year. While reviews of the first Storm were mixed, Verizon had said Jan. 28 that it had sold 1 million phones since the device’s Nov. 21 launch.
McAdam said Verizon Wireless said Tour would be a new upscale BlackBerry, that that company expects to sell along with Storm in the next six months or so.
RIM had said earlier this month that it was planning a new edition of Storm to help it push into the consumer market but it had not announced a timeframe.
Verizon rose 32 cents to close at $29.27 and Sprint was up 7 cents at $5.14, both on the New York Stock Exchange. On Nasdaq, Palm rose 93 cents to $11.46 and RIM’s U.S. shares were up $3.01, or 3.9 percent, at $80.30. (Reporting by Sinead Carew and Franklin Paul; Additional reporting by Alexei Oreskovic in San Diego; Editing by Tim Dobbyn, Richard Chang)