The Dell Pocket PC marks the first time that a device will ship with a sub-$300 price point. Nagel admits that this will have an impact, but he is confident that PalmSource will continue to thrive despite the price pressure.
Nagel declined to comment on which new licensees PalmSource would be announcing in the near future, but he did reveal that some of the new licensees will have signed agreements to also license the rival Symbian and Pocket PC Operating Systems. Nagel sites a "reticence (on the part of manufacturers) to commit to a single platform" as one of the reasons that the new PalmSource licensees will also be licensees of other platforms.
Although Dell's new low cost device may make a splash in the market Nagel feels that the Palm OS will prevail because the Palm is easier to use, PalmSource remains committed to Java, and the new and improved Palm OS 5. Nagel also stressed the fact that PalmSource doesn't require its manufacturers to build 'clone devices.' PalmSource licensees are given the freedom to develop specialty devices - which helps to maintain profit margins in today's highly competitive market.
