This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Palm Pushing Up BlackBerries

Updated from 12:05 p.m. EDT

Palm's (PALM) Treo smartphones will soon be serving up BlackBerry.

As part of a deal announced Monday by the gadget maker and Research In Motion (RIMM), Palm-based smartphones will offer software that will be able to connect with RIM's BlackBerry servers. The software, which Palm will start offering on its Treos early next year, will let users have their email "pushed" via the BlackBerry service to their phones.

The companies did not disclose the financial terms of the deal, but investors still reacted positively. In recent trading, shares of Palm were up 85 cents, or 3%, to $27.58, while RIM shares were up $1.13, or nearly 2%, to $65.14.

To date, the primary way of connecting with RIM's BlackBerry email service has been via its BlackBerry pagers and smartphones. And in recent quarters, handset sales have become the predominant part of RIM's revenue base.

But with the company seeing increasing competition on the server front, it has moved to broaden access to its BlackBerry email services to other handheld devices through its BlackBerry Connect service. The move is seen as a way of defending its server sales, which are not only high-margin, but also the linchpin of the company's strategy.

Although RIM has been pushing its BlackBerry Connect service for some time now, until recently it had seen little success in convincing other handset makers to incorporate it in their phones and pagers. In the last several months, however, companies such as Nokia (NOK) and Sony Ericsson, the Sony (SNE) and Ericsson (ERICY ADR) joint venture, have announced new devices that employ BlackBerry Connect.

Prior to this deal, Palm had offered push email software for the Treo from RIM rivals such as Good Technology and Intellisync (SYNC). Push email services automatically forward email from a server to a handheld device without a user having to press a button to retrieve new mail.

Palm will continue to offer push-mail software other than BlackBerry Connect for its Treos, said Page Murray, vice president of marketing at Palm. Some of Palm's most important enterprise customers are using Good's push-mail service, Murray noted.

"There's no one-size, one-flavor solution. Flexibility and options are good," Murray said.

Murray and Palm declined to say whether the company would extend the BlackBerry Connect service to its upcoming Windows Mobile-based Treo. That device, which Palm announced last month and which is due out early next year, will be the first made by Palm to include Microsoft's (MSFT) handheld operating system. Many analysts had seen that device as a significant threat to RIM, as it will combine what is widely considered the best smartphone on the market with built-in push-mail access to Microsoft's dominant Exchange email servers.

"Nothing" -- no contractual or technical issue -- would prevent Palm from incorporating BlackBerry Connect on the Windows Mobile-based Treo, said Murray, but he added, "We can't talk about whether are or not we are doing it."

Former Palm sibling PalmSource (PSRC), announced a deal with RIM last year to incorporate BlackBerry Connect into the Palm operating system. Despite being PalmSource's primary customer, Palm declined to follow that lead until Monday's deal.

PalmSource said in September last year that it had released software that would allow Palm OS licensees to incorporate BlackBerry Connect into their products. But Palm developed its own software for the Treo to link to BlackBerry Connect, not PalmSource's, said Murray..

"I don't believe PalmSource's software resulted in a product that would be commercially viable," he said. "There was nothing that would pass RIM's standards or the standards of handset manufacturers."

Palm decided to move without PalmSource's help, because, "We have real customers on the line and millions of handsets to sell," Murray said.

Representatives for RIM and PalmSource didn't immediately return calls seeking comment.

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,778.15 +421.28 2.43%
S&P 500 2,061.23 +48.34 2.40%
NASDAQ 4,748.3960 +104.0840 2.24%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs