5 Reasons Palm Is Wrong To Cut Microsoft Windows Mobile

Palm says it will stop development of devices running Microsoft's Windows Mobile operating system in order to concentrate on its new WebOS, despite the fact that the company is still reporting losses and sales of its new Palm Pre haven't overwhelmed anybody.

Here are five reasons why Palm is making a mistake as it forgoes Windows Mobile.

1. How About the Hardware? If Palm is having difficulty selling Windows Mobile devices, but other companies aren't, is it really Microsoft that's the problem? Perhaps Palm should be investing more R&D funds into hardware to create better phones to capture the market.

2. All About The Apps: By focusing on its own proprietary Web OS, Palm could be cutting itself off from third-party application developers reluctant to invest their resources for a more limited return than on a more-established OS. If Apple has taught us anything, the applications are what brings a device to life.

3. Windows Mobile Is Gaining Momentum: Granted, it's not perfect, and it's not Apple's iPhone OS, but Microsoft is nothing if not persistent. Its new Windows Mobile 6.5 release sports a new interface with better browsing support, while Windows Mobile 7 is under development.

4. Why Not Sprint? Maybe it's not Microsoft to blame for Palm's sales shortcomings, maybe it's Sprint Nextel, the only carrier service available commercially for the Pre. It's time for Palm to either add another carrier or find one that somebody wants to use.

5. The Business Factor: It's unclear how many IT departments will want to add another OS for their IT staff to worry about. Most businesses are already shy about iPhones, so until Palm's WebOS can be proven to be secure and integrates with some business-friendly applictions, it's unlikely to gain a lot of ground in the commercial sector.