PalmPower interviews Palm Computing

Can you please explain why you're spinning out Palm as a separate company and how that will impact Palm's valuation as well as 3Com's?

There are three key reasons why it is the right action to form an independent, publicly-traded Palm company now: critical mass, market potential to move its successful platform beyond Palm-branded devices, and the opportunity to maximize shareholder value for 3Com and future Palm shareholders.

As for how this will impact valuation, we cannot comment on questions such as these as we are currently under the Quiet Period restrictions of the SEC for our IPO.

Do you consider Palm an "Internet stock"? If so, why?

Our business includes hardware, OS, wireless, enterprise solutions, and Internet components. We can't comment on our stock, though, because of the SEC's Quiet Period restrictions.

How do you think Handspring's new offerings will impact Palm's market share?

The market is large enough to support both hardware businesses. The main impact is what Palm and Handspring are doing together to Windows CE -- the Windows CE players have fallen even further behind in momentum, features, and price.

We understand Handspring licensed the Palm OS. But the new Visor models seem to use almost exactly the same device shape as the Palm III series, almost as if Handspring is using the same Palm III case molds. What's the story behind this?

It isn't our role to comment on their industrial design choices. They didn't use our tooling.

Do you expect Palm to adopt the Handspring Springboard architecture in future models? If not, do you expect Palm to do something similar?

We already have a lot of expansion options for the Palm III and Palm V lines, and more is coming. There are a number of internal expansion architectures that Palm could adopt in the future, and that various current and potential licensees are encouraging us to consider, but we're not prepared to announce anything at this time.