Research in Motion

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.

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.

Microsoft will unveil its next-generation mobile operating system Monday at the Mobile World Congress in Barcelona, according to The Wall Street Journal. People who have had an early look at the software giant's new platform, reportedly called Windows Phones, say its touch-sensing user interface is comparable to what Microsoft currently offers on its Zune HD music player, the newspaper reported.

Rumors abound that Apple is thinking about further severing its ties with its new competitor in the smartphone market, bouncing Google and giving Bing premium search placement on its mobile Safari browser. If the rumors are true and Bing becomes the default search engine, there could be a reversal of mobile-search fortunes.

Consider the implications behind the statistics. According to Chitika Research, Google is pulling healthy numbers from iPhone users. Specifically, Google search makes up just more than half of all Internet traffic on the iPhone.

For months, mobile-phone users have heard rumors that Windows Mobile 7 might be delayed. However, Microsoft's mobile operating system may be in the hands of users sooner than expected.

Industry observers expect the software giant to introduce the updated platform next month at the Mobile World Congress in Barcelona, which is where the company launched its latest version, Windows Mobile 6.5.

The United Kingdom's largest mobile network said Tuesday that it was having problems keeping up with the increased demands placed on its system by Apple's iPhone and other advanced smartphones. The admission follows on the heels of recent statements by AT&T executives that the heavy data demands of iPhone users are straining the carrier's ability to serve users in U.S. metropolitan markets such as New York City and San Francisco, Calif.