Where Is Palm Headed After the Hype from Last Summer?

And then the 800-lb. gorilla entered the room. Finally, Google's (GOOG) Android-powered handsets started showing up at the end of the year, launching on Sprint's network and Verizon Wireless. The "Droid" is being advertised as doing everything the iPhone can't. Google's Android phones (and even it's own phone soon) are taking every bit of moo away from Palm's handsets as possible. Google's Android operating system for handsets is garnering tens of thousands of applications as it makes a run to the number available on the iPhone. In other words, Palm is being left in a shadow at the moment, precisely when it does not need to be.

Did Palm see the avalanche of Google coming down the mountain at last June's Pre launch event? Probably, and now that Android is crashing the smartphone party, Palm has a lot more to worry about. The recent release of the Palm Pixi was greeted with unenthusiastic reviews, and Android-powered phones are selling at the same price -- so there's no advantage there at all. Heck, even the iPhone 3G sells for $99 while the Palm Pre still hovers at the $150 mark.

2010 will see a ton of shipments from Palm as it recovers from the brink that was 2008 to mid-2009. Still, it faced enormous challenges with Google's Android platform launching across multiple handsets and carriers and what is sure to be a complete refresh of the Apple iPhone sometime in 2010. For now, just one look at a recent comScore tally suggests Palm isn't going anywhere, even though it continues to sell a decent number of handsets. If Palm isn't careful, it will be suffocated by Google's Android and whatever else Apple comes out with next year to replace its aging iPhone design.