Palm made two announcements today. First of all the company is not for sale, so lets clear that up right now. Secondly, Palm has released its new Treo in hopes of pulling in a broader range of customers.
NEW YORK (Reuters) - Palm Inc. (PALM.O) on Thursday introduced a new version of its Treo phone aimed at broadening its appeal beyond business customers to casual users, and said it is not pursuing a sale of the company.
Chief Executive Ed Colligan said speculation that Palm might be a takeover target had likely swelled because the company's stock price, well-known brand and solid cash position have created a perception that it is a "good value."
"The company is not for sale," he said. "We have not been out pursuing (a deal). Our strategy is to execute against our plan."
His comments were made at a news conference at the DigitalLife conference in New York, where Palm introduced the Treo 680 phone, and launched a $25 million marketing campaign, the company's biggest push in more than five years.
Palm also said it will offer Google Inc.'s (GOOG.O) interactive maps to Treo users.
Nasdaq shares of Palm rose 91 cents, or about 6 percent, to
$16.22.
Colligan said he expects the new phone to cost "in a range around $200." It is lighter than previous models due to a smaller battery, but there would be no diminution of battery life, he added.
Palm said the Treo 680 aims to meet growing demand for so-called smartphones -- phones with bright screens that receive e-mail wirelessly, let users listen to digital music, and handle other features beyond talk.
Research In Motion Ltd.'s (RIM.TO) Blackberry is best known for its e-mail capabilities. Last month, the company added a camera and a music player to its latest model, the Pearl, in an effort to widen its appeal to consumers.
Competition in the smartphone market is heating up as Motorola Inc. (MOT.N) started selling its "Q" in July and Nokia (NOK1V.HE) launched the E61 in April. Smartphones are typically larger and more expensive than ordinary phones.
Colligan said the device would be a "more friendly and approachable" model, and would come in a variety of colors.
"We are hoping to cross into that (consumer) group some more," he said. "We are seeing more college kids and mothers with Treos. We are trying to accelerate that more by making it a little more accessible."
Palm last month introduced a version of the Treo with Vodafone, the world's biggest mobile service provider.
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