A Message to Palm Customers, Partners and Developers

As many of you are aware, we are in the process of building our next generation software platform. We are very excited about how this is coming together. It has a modern flexible UI, instant performance, and an incredibly simple and elegant development environment. We are working hard on this platform and on the first smartphone that will take advantage of it.

In the course of the past several months, it has become clear that the right path for Palm is to offer a single, consistent user experience around this new platform design and a single focus for our platform development efforts. To that end, and after careful deliberation, I have decided to cancel the Foleo mobile companion product in its current configuration and focus all of our energies on delivering our next generation platform and the first smartphones that will bring this platform to market. We will, of course, continue to develop products in partnership with Microsoft on the Windows Mobile platform, but from our internal platform development perspective, we will focus on only one.

Because we were nearly at the point for shipping Foleo, this was a very tough decision. Yet I am convinced this is the right thing to do. Foleo is based on second platform and a separate development environment, and we need to focus our efforts on one platform. Our own evaluation and early market feedback were telling us that we still have a number of improvements to make Foleo a world-class product, and we can not afford to make those improvements on a platform that is not central to our core focus. That would not be right for our customers or for our developer community.

Jeff Hawkins and I still believe that the market category defined by Foleo has enormous potential. When we do Foleo II it will be based on our new platform, and we think it will deliver on the promise of this new category. We're not going to speculate now on timing for a next Foleo, we just know we need to get our core platform and smartphones done first.

I would like to thank our customers for their interest in Foleo. I know there will be disappointed folks who were looking forward to carrying a Foleo for all their mobile computing needs. I am certainly one of them. I would also like to thank the developers who have supported our Foleo efforts. They have been loyal to Palm and have worked hard to deliver some compelling solutions on the Foleo platform. I know that they will understand that the right thing to do for the long run is to focus on one platform that will live for years, rather than invest energy in a one-off solution. We will make every effort to make sure we bring our developers forward to our next generation platform.

This decision will require us to take a limited charge of less than $10 million dollars to our earnings. This is a lot of money, but it is a small price relative to the costs that would be required to support two platforms going forward. This decision is in the best interest of our customers, our team, our products and our shareholders. I hope this renewed focus at Palm will allow us to deliver more compelling solutions to our core smartphone market, and it will allow us to position ourselves for the long run around one Palm experience.

-Ed Colligan, CEO

Comments

[Patrick Smith]

The second I saw the product announced, I knew it wouldn't make it. Palm needs to focus on the smartphone. It has already lost so much ground to the Blackberry, the iPhone. I'm sad to say that I'm ready to defect.

[Clay Glenn]

I have been a loyal Palm PDA user since the original Pilot. I've been through several generations of PDA, and now use the TX. I would love to see a future for the PDA platform. I don't need another laptop or cell phone. I need a more capable PDA. Any chance of getting a TX2 someday?

[Jacob]

Ed - I can't even begin to tell you how right that step is.

Congratulations - you're one of the extremely few guys in this business, who can muster the cajones to steer away from Abilene, instead of just keep on driving there.

I anxiously expect your next call, and your next smartphone.

I can expect... a revolutionizing smartphone... right ? ;)

[Manuel]

Very, very sad. Foleo was the perfect Thin Client / Terminal / Admin Tool. I hope you haven't made this decision only for the brokers.
Please contact me if there is any possibility to get an Foleo.
@developers: you've made a good job. My condolences.

[Michael Brown]

Ed and Jeff,

Thank you for making the tough call, but the right one. Now is not the time to be introducing new product lines; now is the time to get your flagship products back in shape.

I've posted an editorial on PalmAddicts about what you should focus on moving forward, it can be found here:
http://palmaddict.typepad.com/palmaddicts/2007/09/why-postponing-.html

It links to an article I wrote earlier about what you can do to improve the next generation of Foleo, when the time is right to re-introduce that product to the market, located here:
http://palmaddict.typepad.com/palmaddicts/2007/06/the_foleo_what_.html

Both articles can be found on my blog tomorrow at:
http://solutionsathand.ca/en/blogs/ under the Tag "Foleo"

[John]

Not many CEOs have the guts and vision to take such brave decisions in today's corporate america. Steve Jobs does. Steve Ballmer should. Congrats to Ed Colligan for doing the right thing and giving Palm a chance to compete once again in a market it once dominated... probably created, in fact.

[bill]

I believe Foleo will have a good future.
Don't give up!
^_^

[Keith Sketchley]

A quick look leads me to ask what the Foleo was that the smallest regular notebook computer was not? Especially one that can use the cellular network on its own, as is available today.

Users have choices between very small (many cellular phones), too small to be useful (the typical PDA phone with small display and too-small-for-my-thumbs keyboard), emerging fold/slide-out phone keyboards (I haven't heard of one that does it well), and very small notebook computers (but even the supposed full-size keyboard on a Thinkpad 12" laptop does not have the same key spacing as a normal keyboard - apparently it meets some ISO standard but not defacto market standard (about a 10% difference, which the user will notice).

The decision among those choices will vary with the individual, based on fit-in-pocket/hang on neck etc, need for immediate access to email, need for strong reception performance as a phone,
need to have a laptop while travelling in any case....

[selmi]

again some useless business talk. i want to SEE something real. not crappy 'smartphones' which are missing features of 7 years old 'dumbphones'. i hoped foleo is sign of change to better and this is result.... i wanted it, it would be perfect notebook for travelling for me... (and no, i wouldnt even think about using it with treo, i wanted notebook which is relatively cheap, fast and can stand on battery longer then these craps they are selled today)

i want to see good pda (Tungsten T5+Wifi+GPS), good smartphone (Treo650+wifi+gps+cell broadcast support+location showing support+possibility to get confirmation about sms received on other side) and something new which would finally compete with modern pocketpc/symbianos/linux devices. not this crap what we can buy today in insane prices.

wake up palm, you were BIG and this way you are going is way to oblivion... or if you cant make anything decent then give up before you will become complete joke. i loved palm devices and palm but its simple too much what happens today and nostalgy is not way to live...

[Gary A]

That is too bad for this product. I saw the vision but the price was way too step and the performance way too low. If it could be accessible via WiFi or WiMax then it could be used as a streaming podcast player or...

I most surely would like to have one or two or maybe even a dozen of the Foleo if they were to be scrapped. I could find some very interesting projects for a device like that.
If anyone finds out how to get them please let me know gary dot anson at datalogic dot com
Thanks!

[deCorvett]

Great decission. Foleo is a good idea, but not a good product, in the way you have developed it.

Foleo with (everything at launch time):

-More internal memory (at least 8Gb)
-Bluetooth 2.0
-Wifi G
-Real e-mail client
-Real and tabbed browser
-Multimedia capable
-You tube compatible
-Just a bit cheaper

Will sell like Coca-Cola. The way it's defined today, it's too limited.

On the other hand, Just an idea on the way the next Treo must be:

http://xs217.xs.to/xs217/07312/Treo900p.jpg

Treo design but with slidding keyboard and big screen. Stop doing square screens on every phone, it's ok for some models (like Centro), but not for the long time awaited "state-of-the-art Treo") Why? The most of WiMo apps don't work propertly with square screens, and independent of the OS, people wants more screen size; and most of the people don't need the keyboard always visible. It's simple, do the same you made with handhelds in the past: low featured Treos=square screens. Fully featured Treos= large screen.

Of course, this Treo must have wifi, BT 2.0, and a huge amount of memory (at least 2 Gb).

You must give a punch on the table with your next Treo.

And don't discard to create a LD+phone model. An anti-iPhone. But with flash drive, not microdrive, and an UI oriented to multimedia. With flash drive, your LD might have been one best-seller.

[rgraham]

Okay, what now? When can I expect Foleo II? Can I expect Foleo II at all? I'm more than a bit put off here, as I already sold my NEC MobilePro 900 and MobilePro 900C based on the assumption that the Foleo would be out soon. I need something more than platitudes and mea culpas.

[Harald Walker]

A brave decision. I am working for a small software house which is in a similar situation. Hope to see some great new Palm products in the future. Until then I will take good care of my LiveDrive.

[Ian Blythe]

So were any Foleos made? I'd really like to use one with my Treo 650.
Please ship to the UK! I can certainly make use of a Foleo, but not at $500!

[Joseph Murphy]

I am sorry to hear it will not be produced. I would be happy to purchase the current model even without long term support. I long for a small functional laptop. The power of todays laptops is over kill for most people. How often do most people use power apps on the move yet alone at home. My HP 95LX stills runs lotus 123 but boy do I need a replacement.

[JimC]

That's a shame.

Chances are, you will never recover from the ill will that this move will create in the Linux community.

It may not hurt overall sales now. But, it will later. I'm seeing too much press about it (which is what brought this page to my attention).

That's too bad, since profits were looking up before this move.

[Anthony]

Uh oh! It looks like Apple just debuted the hottest "PalmPilot" yet with the iTouch. PDAs aren't dead but I am still glad the Foleo is. Watch Apple's recent Keynote address again. The device has to fit in the pocket!!!

I have loved the Palm OS for its simplicity, ease of use and functionality. There are a ton of third party apps out that I use. But it needs to evolve. Again, Apple has done it. I think its time you bring back Mac support and study their business methods. While you're at it, pick up and read "Certain to Win" by Chet Richards and "Boyd" by Robert Coram. His OODA loop and theories may save Palm, Inc. and I hoping it does. But it is amazing how Apple is developing great consumer products and just totally out-maneuvering the competition.

[Steve Mason]

There are many of us out here who just want a good handheld like the LifeDrive. Don't forget us.

[v1nce]

I would like to buy a foleo prototype !!!
Please, contact me

[Fernando]

I'm very sad for cancel of FOLEO

I want know if I can get anyone of this beta models?

[voytek]

I really hope Palm will bring back a PDA, not just smartphone;
T3 with WiFi or TX2

[Anthony S. Harbour, MEd]

I was excited about Foleo and while I'm dissappointed it will not be forthcoming in the near future, I hope Palm will continue to move towards a Foleo-type solution in the future. It would be nice if Palm would post a link for that wonderful background music from the Foleo introduction video.

[Lottie]

It is understandable, but I hope the decision to drop the Folio does not come back to haunt anyone. As a baby-boomer, I know my eyesight that will begin waning soon. I was looking forward to something more substantial and easy to use than the "let's make it even smaller" smartphones that are currently available. There is a market for a product like this..something that can easily fit into a purse, pocket, or briefcase, but is much less cumbersome that a notebook, or laptop. Boomers have often been called the "pig in the python." As we age, our wants and needs change, but we will always be the big demographic...Just a thought, for anyone out there who's listening.

[Lottie]

May I purchase a working Folio prototype? Please contact me...

[XDS]

This whole things one hell of a public stunt. Adios palm , thanks for stealing my e-mail.