Palm boosts Pro credentials

Smartphone maker Palm has strengthened its line-up of Windows Mobile handsets, in a move aimed to counter competition from Nokia and Research in Motion.

The new Treo Pro will be sold by Vodafone and 02 in Europe in September, and by Telstra in Australia, Palm said.

In the United States, Palm does not have an agreement with a carrier to sell the phone, but it said enterprise demand is growing for unlocked phones that can work on any network.

CL King analyst Lawrence Harris noted, however, that the Treo Pro's price tag of $549 is high without the subsidies typically offered by carriers to lock in subscribers.

"Given the pricing and lack of carrier sponsorship in the U.S., we believe initial sales of the Treo Pro will be limited," said Harris, adding that only 21 percent of Palm revenue came from international sales in its fiscal year 2008.

The Treo Pro is Palm's second phone with Wi-Fi and Global Positioning System (GPS) technology that supports features such as directions.

Palm said the use of Microsoft's Windows Mobile 6.1 software would help it compete with RIM's BlackBerry Bold, RIM's first handset to support 3G and 3.5G data connections.

"We've chosen to partner with Microsoft to compete effectively with RIM," said Brodie Keast, Palm senior vice president for marketing, but he added that there was plenty of room for both companies to grow in the smartphone market.

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