By Justin Madubuko, 30 July 2001 16:30
NEWS Palm is to restructure its business and create an independent group focused on licensing its Palm operating system. The change is seen as an easier way for Palm to eventually spin off the Palm OS Group, a move which is currently under consideration. The company's platform solution group will operate independently of Palm by the end of the year but will share staff services and company infrastructure. The company has been hit hard by the downturn in sales of handheld computers in 2001. Palm hopes by increasing the number of licensees of its Palm OS, it will be in a position to fight off challenges from the likes of Microsoft and Compaq. In addition, Palm plans move into next-generation devices with high-speed wireless internet connections. The company recently announced it would offer Palm OS on fast chips based on designs by RISC chip designer ARM. Palm currently has alliances with chipmakers Intel, Motorola and Texas Instruments. Industry experts have warned that Palm could follow Psion into oblivion unless it gets out of the hardware business.
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