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Palm Fronds Diverge: One Business Excels, The Other Founders; PalmOne Hot With Investors; Treo line of smart phones lifts PalmOne; PalmSource hurt by slumping PDA sales.(INTERNET & TECHNOLOGY)
Byline: PATRICK SEITZ
Once part of the same company, handheld firms PalmOne and PalmSource have seen their fortunes go in different directions.
Device maker PalmOne is a Wall Street darling of late, while software supplier PalmSource isn't getting any respect.
PalmOne has been buoyed by the popularity of its Treo line of smart phones. The products use PalmSource's Palm operating system, but analysts say PalmOne will expand its Treo product family soon to include a device running Microsoft's Windows Mobile software.
PalmSource's woes stem from declining sales of traditional personal digital assistants and its trouble attracting licensees. One of its major licensees, Sony, has largely abandoned the PDA business. It decided to stop selling its Clie-branded Palm devices in the U.S. and Europe earlier this year and could do the same in Japan, its last market, by year's end.
PalmOne and PalmSource are the offspring of the former Palm. The parent company spun off PalmSource and renamed the hardware business PalmOne in October 2003.
Executives saw the breakup as a way to free both companies to seek new growth opportunities.
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