Research In Motion Ltd

With more than half its latest devices left on store shelves at the end of the third quarter, things may be getting out of hand for Palm as the manufacturer struggles to hold market share in the rapidly evolving telecom market.

Last year, Palm thought it had all the pieces for a turnaround in the market it pioneered: A new CEO known for making the iPod a household name, a sleek new smart phone called the Pre and fresh, intuitive operating software.

Instead, the company is in danger of going the way of its 1990s Palm Pilot, making it the latest innovator to learn that great technology and an accomplished leader don't guarantee success.

Investors have been selling shares of Palm Inc. at a rapid pace this year, worried that the company won't be able to turn its business around with new smart phones because of fierce competition from Apple and BlackBerry.

The stock has lost nearly 40 percent of its value so far this year. On Thursday it fell 22 cents, or 3.5 percent, to $6.05 in afternoon trading. Shares of rival Research in Motion Ltd., meanwhile, have risen nearly 4 percent year-to-date.

The reduced revenue guidance for Palm's current business year, announced Thursday, is suggesting to industry observers that the company will either have to make major alterations to its business plan or find a buyer. The slower-than-expected consumer adoption of the company's products -- which pushed Palm's annual projections well below its earlier forecast of $1.6 billion to $1.8 billion -- was no big surprise to industry observers.

Mobile-phone sales worldwide headed up at the end of last year, according to a new report from industry research firm Gartner. Sales in the fourth quarter posted a 8.3 percent increase compared to a year ago, although overall 2009 sales dropped 0.9 percent.

Gartner said the drivers pushing up sales are smartphones and low-end devices. Smartphone sales, said Gartner Research Director Carolina Milanesi, "continued their strong growth in the fourth quarter of 2009," up 41.1 percent over 2008 to 53.8 million units. For all of 2009, smartphone sales were up 23.8 percent.

Nokia Corp. may be the world's top cell phone maker, but it's no longer a trendsetter, as a host of inventive and alluring technologies from North America is shifting the center of gravity in the cellular universe away from Europe.

Despite efforts to boost its position in the U.S., Nokia is struggling to compete with Cupertino, California-based Apple Inc. -- maker of the iPhone -- and Canadian smartphone maker Research in Motion, which makes the BlackBerry.

When Microsoft showcased its latest smartphone operating system in Barcelona, Spain, on Monday with innovative features and a new name, CEO Steve Ballmer noted that one thing that won't be updated is its business model. That means original equipment manufacturers who want to feature Windows Phone 7 Series will still pay a fee for each device, estimated in the past by Strategic Analytics at between $8 and $15 per phone.

With only a slight nod toward business clients during the launch of Microsoft's latest mobile-phone operating system this week, CEO Steve Ballmer fueled speculation that the software giant wants a bigger slice of the consumer pie.

Samsung Electronics Co., the largest maker of cell phones for the U.S. market, on Sunday revealed the first phone running Samsung's own "smart" software system, bada.

With bada, Korea-based Samsung is taking the TouchWiz system used on its touch-screen non-smart phones and making it the basis of a smart phone platform to take on Apple Inc.'s iPhone and Research In Motion Ltd.'s BlackBerry. Samsung also makes phones based on other competing smart phone systems: Android, created by Google Inc., and Symbian, of which Nokia Corp. is a major backer.

The world's largest wireless carriers, including the four largest in the U.S., announced Monday that they are combining forces to make it easier for software developers to write applications that will run on as many phones as possible.

The "Wholesale Applications Community" is an attempt to retake the initiative from phone makers like Apple Inc., Nokia Corp. and Research in Motion Ltd., which have applications stores of their own. Google Inc. is also building a significant store for its Android software.