Brian Caulfield, 01.08.09, 05:30 PM EST
Struggling smart-phone company introduces new handset, operating system.
LAS VEGAS--Ever since Apple Chief Steve Jobs unleashed the iPhone two years ago--in a now legendary demo--the world has been scrambling to catch up with Apple's sleek, touch-screen gizmo.
Two years later, someone has finally advanced the conversation. Palm (nasdaq: PALM - news - people ) on Thursday introduced a new handset, dubbed Pre, and new software, Web OS, that finally adds some fresh thinking to the ideas showcased in today's iPhone knockoffs. Pre will certainly steal some sales away from Apple's (nasdaq: AAPL - news - people ) so-called Jesus phone when it goes on sale. Palm's shares soared 33.64%, or $1.11, to $4.41 Thursday as details of its new products reached investors.
Web OS, which will be showcased in the Pre, will suck in software from around the Internet--whether it's a Web-based e-mail account or a workplace calendar--and serve it up via applications that users can flip between with a flick of the thumb, like a deck of cards. The phone's slick, multi-tasking software allows for tricks that can't be attempted with today's iPhone. For example, users can check their colleagues' calendars while on a call with them and then send them e-mail invites to a follow up meeting, via e-mail, before hanging up.
The user interface is another advance. It allows users to pop open a new application with a thumb swipe, toss them to the side and slide right back to them when needed. There is no need to close boxes or drag handles, and there are no window panes. Users will never have to push a "save" button, either, since a user's work is saved automatically. "This platform is going to be the basis for innovation at Palm for a decade to come," Palm Chief Executive Ed Colligan said.
The curved device incorporates a touch screen and a slide-out keyboard, like many iPhone knockoffs. The phone supports EVDO, wi-fi, GPS and Bluetooth version 2.1 with stereo support. It also boasts 8 GB of on-board storage, a 3.1-inch touch-sensitive display and Texas Instrument's new OMAP 3430 processor.
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Those specifications, coupled with Palm's new software, allow the 4.8-ounce handset to perform some nifty tricks. For example rather than just being useful for jamming out e-mail, the keyboard can be used to instantly dip into information on the phone, or any of the online services it's linked to. Start typing the name of, say, the Blue Man Group, and the application will start by looking for information in a user's contacts and calendar starting with the letters b, l, and u. But as the user keeps typing and it's clear the information needed isn't in, say, a user's contact list, the phone narrows down the options, allowing a user to look up information on the Blue Man group via Google (nasdaq: GOOG - news - people ) with just a touch.
While Pre will grab headlines, Web OS was the real news. The new software dumps information from separate accounts into a messaging and calendaring application that will make the gizmo a valuable organizer.
