The Apple, Palm rivalry
By siliconindia   |   Wednesday, 05 August 2009, 15:52 IST   |    4 Comments
Printer Print Email Email
The Apple, Palm rivalry
Bangalore: Palm has filed a complaint with the U.S.B. Implementers Forum, claiming Apple is restraining trade. Palm says that Apple, which allows only its own devices to connect directly with iTunes software, is misusing the standards put in place to help interoperability between computers and devices using a USB connection. Palm is now trying to rally the consumer electronics industry to its defense. "There isn't much precedent for this case. It's breaking new ground. In my mind, ultimately the users are the arbiters in the outcome of these situations," said Mike Abramsky, an analyst with the investment firm RBC Capital Markets to The New York Times. Currently, Palm manages to sync with iTunes by duping the iTunes software into recognizing the phone as an Apple music player, which allows it to synchronize and transfer files between the phone and a personal computer. Many people are already claiming that this approach from Palm in itself is a breach of the standards set by the USB governing board. But according to The New York Times, Palm says its strategy of cloaking as an iPod is acceptable, because it is in response to Apple's restriction. "We think we are consistent with our compliance. We're not trying to appear to be anything we're not - except for interoperability purposes with iTunes," said Douglas B. Luftman, Associate General Counsel, Palm. "Apple understands that seamless relationship between the iPod, the iPhone and iTunes. It's a big driver behind why consumers are buying their devices, and they're going to try and protect that," said Gartenberg, Analyst at Interpret. But the stakes are high for Palm as well, who once dominated the smartphone market with its Treo handsets. Since the entry of Apple in the smartphone market, Palm has been losing its market share. There are many who think that Apple is overlooking a potential revenue source by trying to ban the use of iTunes from Palm. "All this means is that Palm's customers would be able to purchase music through iTunes. This would offer an opportunity for increased revenue for Apple," said J. Gerry Purdy, Chief Analyst of mobile and wireless at the research firm Frost and Sullivan. Palm is not the only company clashing with Apple. Recently, Apple had refused to allow certain Google applications on the iPhone. Federal Communications Commission has said it was looking into those actions as well. It is not clear how long Palm planned to battle future software patches from Apple that disable the smartphone's compatibility with iTunes. The company did not say whether it would pursue lawsuits or enlist government aid on the restraint of trade.

siliconindia