Palm set to unveil "smart phone companion"

Palm founder Jeff Hawkins is set to announce Wednesday a “new category of mobile device” from Palm.

Palm’s effort is part of rush by consumer electronics companies to introduce handheld devices that go beyond simple PDA functions. Palm’s Treo smart phone has been popular, driving strong revenue gains, most recently in its third fiscal quarter to $410.5 million compared with $388.5 million for the same quarter last year. But that didn’t help profits, which dipped for the quarter $16.5 million, compared with $19.8 million for the same quarter last year.

It seems unlikely the new category of device, if initial speculation is accurate, will ignite the excitement created by the upcoming release of Apple’s iPhone. Palm apparently is introducing what it calls a “smart phone companion,” dubbed Palm Foleo, which plugs into the Treo.

Why would you plug a companion into your smart phone? To sync with the Treo and then use Foleo’s sort-of full-size keyboard and larger display for handling things such as documents and e-mail.

Engadget reports Foleo will feature instant-on access, Palm’s new Linux operating system, five hours of run-time on batteries and a $500 price tag.

That makes for a pricey package: the new Treo 755p is listed on Palm’s Web site at $579 without a cellular service plan, and at $279 with a two-year Sprint contract.

Palm fired off a press release early, and specialty Web sites, such as Engadget, are all over it. The formal unveiling is set to take place at 2:30 EST via a Webcast from the D: All Things Digital conference in Carlbad, Calif.