the Treo blog

This past year has been the most active Palm has been when it comes to releasing new Treo smartphones. Last year, Palm CEO Ed Colligan promised that in addition to the Treo 700w, Palm would release three new smartphones in 2006. To date, we’ve seen the following releases:

• Palm Treo 700w: Palm’s first foray into Windows Mobile. The Verizon Treo 700w was released in January.
• Palm Treo 700p: The follow up to the Treo 650, the 700p smartphone featured minor improvements over the Treo 650.
• Palm Treo 700wx: Almost identical to the 700w, the 700wx from Sprint features twice the program memory.
• Palm Treo 750v: Announced today, this new Treo will be available in Europe in early October and will run Windows Mobile 5.

Despite my ineptitude for mathematics, that’s a total of 4 new smartphones released by Palm this year. Truth be told, it’s more like 3 and 1/2. It is pure speculation on my part that perhaps Palm didn’t expect the release of Sprint’s Treo 700w to need the ‘x’ (added program memory) when Ed Colligan made this announcement. It would be a safe bet that Palm’s Treo 750v could find its way to the US in the form of the Treo 750 on Cingular Wireless. With Verizon and Sprint offering both new Palm OS and Windows Mobile powered Treos, Cingular has been left offering the older Palm Treo 650.

Although this year has seen more new Treos and an expansion of the product line, it seems Palm is missing the mark. Earlier this week, Palm reported disappointing preliminary forecasts due to lower Treo sales in the retail channel. Palm CEO addressed the shortfall by saying, “We will soon address the market dynamics responsible for our first-quarter revenue shortfall with two major new product launches, one that improves our pricing position and both which extend our carrier relationships throughout the global markets.”

There was a certain amount of excitement surrounding the 700w release, being the first Windows Mobile powerd Treo. Six months later, Palm followed that up with a 700p that doesn’t exactly inspire users to upgrade from their Treo 650. With the same form factor as the w/wx, it is also a catalyst for confusion among those shopping for a smartphone. Palm is also facing competition for the Motorola Q. It is a product that has redefined what people think about smartphones and it’s $200 less than both Treos. In some ways, Motorola has found the sweet spot for cellphone users looking to make the transition to a smartphone.

To some, the form factor of current line of Treos is not much different than the Treo 600. Technology moves at a pace where every 6 months there is an expectation of smaller, faster and expanded feature set is expected. It’s getting harder and harder for consumers to find a reason to upgrade to a new Treo. Meanwhile, the Motorola Q has given consumers yet another choice, only this time a sleek, thin device similar to their popular Razr. There is also greater competition from Research In Motion with the release of their new consumer Blackberry called the Pearl. According to analysts, it’s only a matter of time before Apple releases the iPhone. I’d venture to guess a launch of that magnitude will create a certain amount of excitement in the mobile space. Palm needs to regain that excitement and perhaps the remaining product launch will be Palm’s most significant.