Can Apple Save Palm, And Will Motorola Break Up?

Jon Rubinstein, Apple's former head of hardware engineering, often dubbed the "Podfather" because of his early shepherding of the iPod, is now in charge of Palm. The question is can he revive the sinking fortunes of the company?

As this WSJ article points out, the company is banking on the low-end Palm Centro to become popular and gain market share among younger users. However, despite widespread marketing and an aggressive price point, the Centro is not likely to be the hit Palm had hoped. And product development cycles are such that it may be a couple of years before any Rubinstein-inspired handsets make it to market.

Over at Motorola, the WSJ speculates, the company may be preparing for a sale of its troubled handset division, which hasn't had a hit since the wildly popular Razr. But the market is fickle and the Razr was "yesterday's handset." Motorola's CEO Ed Zander was bounced in an effort to inject new blood and energy into the company. He is being succeeded by company president Greg Brown.

Worldwide market share of smartphones, based on Q2 shipments of approximately 30 million units:

  1. Nokia -- 46%
  2. "Others" -- 29%
  3. RIM -- 9%
  4. Sharp -- 8%
  5. Fujitsu -- 5%
  6. Palm -- 4%

Source: Garnter (numbers are rounded and so exceed 100%)

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Related: CNET reports on forthcoming layoffs at Palm. Silicon Alley Insider suggests that Palm could create a great user experience and revive by adopting Flash as a developer platform.