By Kasper Jade
Published: 12:00 PM EST
When Apple interim CEO, Steve Jobs, killed the Newton project a while back, he promised the Macintosh faithful a replacement. Last year Jobs made a hostile attempt to acquire Palm Computing from 3Com Corporation, makers of the leading PDA device, the Palm Pilot, but 3Com wouldn't bite.
It's no secret Steve Jobs never liked the Newton, which he often referred to as a "scribble toy." During one of his keynote addresses not too long ago, someone from the attendance asked Jobs what the future of OpenDoc was and what should he do with his Newtons? Jobs grinned and sarcastically replied "Well I'll tell you what you "should" do with your Newtons... after the keynote."
On the other hand, Jobs is a proven fan of Palm and the PalmOS platform. According to multiple sources he, along with Apple, more recently attempted an outright purchase of Handspring Inc. -- a startup company by Palm founders Donna Dubinsky and Jeff Hawkins.
The company, which secured funding from leading venture capital firms Kleiner Perkins Caufield & Byers and Benchmark Capital, has also obtained a license for the Palm Computing platform from 3Com Corporation. Jobs and Apple were apparently turned down once again, as the folks at Handspring claimed that the company was not being built for sale.
However, Apple was rumored to have a plan on the back-burner the whole time. According to sources, Apple and Palm have been in close negotiations for some time now. The two are said to have a deal waiting in the wings that would ultimately allow Apple to develop handheld products which will be compatible with the world's market-leading handheld platform, and which would run the thousands of applications already developed for the Palm environment.
The result would ultimately be an Apple branded Palm device, or something of the sort. Apple, in turn, would pay royalties to Palm for each unit sold. But the deal is goes even further, sources said. The rumor is that Apple will be relocating certain staff members to 3Com (Palm) locations shortly after Macworld New York, suggesting that Apple may have some say in the further development of the PalmOS platform.
An outstanding percentage of over 12% of Macintosh users currently own Palm Pilots, recent surveys say. This is an extremely high number that will possibly yield a match made in heaven between the most innovative computer company and the makers of the world's biggest 'small computer.' The deal, which is said to go public at this month's Macworld Expo or shortly after, will conclude yet another chapter of Apple's renewed product strategy.
