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It has been a busy year for Palm, Inc.

First Palm smartly hedged its bets, although ruffling a few loyal feathers in the process, by releasing its inaugural Windows Mobile device, the Treo 700w. And not too long ago, the company followed up that success with the long-awaited Palm OS Treo 700p, the much-improved sequel to the Treo 650—the number one smartphone in the U.S. One of the many advantages of the 700p - and the 700w, for that matter - over the earlier model is its high-speed EVDO (Evolution Data Optimized) networking for Sprint and Verizon's CDMA networks.

Unfortunately, Palm's seeming recent loyalty to CDMA carriers leaves the millions of GSM users in the U.S. and billions worldwide out in the cold when it comes to the new speedier Treo experience. Not for long, however, if the Internet rumor mill has anything to say about it. According to the blog engadget, a leaked Cingular roadmap shows not one, but two GSM Treos - at least one with 3G UMTS (Universal Mobile Telecommunications System) - arriving this fall, in October.

Palm committed to releasing several new smartphones this year, with - some estimate - a couple more still due before the end of 2006. Perhaps these models, one supposedly codenamed Nitro and the other Lennon, are them.

Interestingly, both Nitro and Lennon - from the sketch of the roadmap provided (see top image) - look a bit like the previously rumored Treo Hollywood. The lack of an antenna in each model would be Palm's biggest deviation from Treo design since the unveiling of the Treo 600—itself a marked difference (and improvement) from the clamshell Treo 270 and 300 models—back in June 2003, about the time designer and manufacturer Handspring was acquired by Palm.

Here's what little is known so far:

Reportedly Lennon delivers the 3G goods with UMTS technology. Cingular subscribers should be able to send and receive e-mail, receive video and access the Web at comparable speeds to Sprint and Verizon EVDO Treo customers, averaging data transfers at 300 to 400 kbps. It is also a Windows Mobile Pocket PC Phone, like the Treo 700w, and will ship with software client support Microsoft Messaging and Security Feature Pack for Exchange, which delivers push e-mail to the device.

All that appears to be known about Nitro is that it may run the Palm OS and it sports a 1.3 megapixel camera.

Cingular has been rolling out its high-speed High-Speed Downlink Packet Access (HSDPA) network (400 and 700 Kbps) since last December, launching it in 16 cities with additional availability in surrounding 54 communities. The carrier added Atlanta today, making that market number 17. HSDPA is an evolutionary step forward over UMTS, but it is backwards compatible. And where HSDPA/UMTS isn't available, customers automatically receive service on Cingular's much-more widely available EDGE network, 70- 135 Kbps.

Support for GSM/UMTS networks is a must for Palm if it wants to compete on a global scale.

While there's agreement that it's possible for them to release Windows Mobile handsets (Lennon) with 3G technology for GSM networks - other's have done it - there's been much consternation about whether it would even be possible with the aging Palm platform—stuck on version Garnet/5.x for years now, ever since all PDA/smartphone vendors, including Palm itself, hands-down rejected PalmSource's Cobalt/Palm OS 6 a couple of years back.

PalmSource has stopped development on the Palm OS, even, and is focusing all current resources on its new open source-based Access Linux Platform (ALP) and MAX, the new graphic user interface and application framework for the OS.

Palm won't be able to create a smartphone on ALP anytime soon, as devices based on the platform aren't due until 2007, most likely later in the year, or possibly even early 2008. Nor has Palm committed to doing so even. There are even rumors that the handheld-maker itself is developing its own Linux OS option.

Several months ago, Michael Mace, PalmSource's former Chief Competitive Officer, said in his blog he wasn't so sure Palm could adapt a Palm-based Treo to operate on a UMTS 3G/GSM network. So if it couldn't create a 3G GSM Palm smartphone or develop an ALP handset in the near future, it's been speculated the company may move over to Windows Mobile completely.

Mace doubted this would happen; although Palm's silence on the matter concerned him. "Palm may not have a choice but to put a lot more investment against Windows Mobile, since it's compatible with UMTS right now," he wrote.

That would mean fewer resources for Palm OS device development, however.

The thing is, Palm has often proved very creative when it comes to adapting the Palm OS and Windows Mobile, even, to its goals of making the user experience as simple and easy to use as possible.

When PDAStreet met with them at CTIA 2006 and recieved a hands on demo of the 700p, they emphasized that when they took on Windows Mobile for the 700w, part of the deal with Microsoft was that Palm would receive much leeway to make the device Palm-like. Palm's rep said the company couldn't have taken on the project if the 700w would have turned out just like any other Windows Mobile device, interface or physically.

So if the Palm OS can't support UMTS technology natively, it wouldn't surprise us if Palm found a way to implement it themselves in Nitro. The little we know of Nitro, if the Treo even exists, gives us no indication (other than by its absence in the rumor) if the 3G technology is even in there, however. We'll have to wait until more details to emerge to be certain.

How long Palm can work and manipulate the Palm OS to its advantage is a good question. At some point they're going to have to change platforms for technical reasons, to keep up with the Motorolas, Nokias and RIMs of the world—be that there own flavor of Linux, ALP, or something else. But the move will have to satisfy the millions of Palm OS users who won't make the change to Windows Mobile, while at the same time bringing new customers into the fold as well.

Q Reaction
Forbes.com reports that RBC Capital Markets analyst Mike Abramsky says investor skittishness over Palm shares after the release of Motorola's BlackBerry/Treo killer, the Q, earlier this month was an overreaction. Palm shares lost about 33 percent in value since the launch of the Q.

He expects positive earnings reports from the handheld-maker this Thursday and has upgraded the company to outperform.

"Palm retains a superior Smartphone experience, brand loyalty, and other advantages over new competitive entrants and has a pending new product pipeline," according to Abramsky.

Lennon and Nitro?

The analyst also expects Palm to issue strong guidance for its first fiscal quarter, helping to "convey building momentum for Palm's Treo Smartphones, and may mitigate some fears of competition from the Motorola Q," he added.

There are reports of high return rates for the Q. Customer complaints include the lack of a touch screen, a function of it being a Windows Smartphone and not a Pocket PC Phone like Treo 700w. You can view Office documents on the Q, but can't edit them. Its thumbwheel doesn't function like a BlackBerry's. The Q doesn't have a standard 2.5mm headset jack, but uses a mini USB connector instead. (Although Verizon sells an adapter so folks can use their existing headset and compatible headsets are sold in most locations.) Among some other issues.

The subsidized price for the Q is half that of the 700w and Palm-based 700p, however.