Palm Inc unveiled a Treo smartphone on Wednesday based on Microsoft Corp software to compete for business users against rivals such as Research In Motion's BlackBerry. The new Treo Pro will be sold by Vodafone Group Plc and O2 in Europe in September, and by Telstra in Australia, Palm said.
In the United States, Palm does not have an agreement with a carrier to sell the phone, but it said enterprise demand is growing for unlocked phones that can work on any network.
CL King analyst Lawrence Harris noted, however, that the Treo Pro's price tag of $549 is high without the subsidies typically offered by carriers to lock in subscribers. "Given the pricing and lack of carrier sponsorship in the US, we believe initial sales of the Treo Pro will be limited," said Harris, adding that only 21 percent of Palm revenue came from international sales in its fiscal year 2008.
The Treo Pro is Palm's second phone with Wi-Fi, a short range wireless technology that could boost Web speeds in weak cell phone reception areas, and Global Positioning System (GPS) technology that supports features such as directions.