Palm may or may not be about to be acquired –

no confirmation either way as we went to press — but it is planning an alternative to the iPhone. So says the New York Times, apparently basing its story on Palm’s appointment of a classy ex-Apple designer called Paul Mercer.

Some interesting developments are brewing at Palm, with the company finally stating its intention to switch to a new, in-house OS built around open source Linux and elements of the original Palm OS (now known as Garnet). It is also preparing to unveil a new product in May, The company’s founder Jeff Hawkins has also been dropping hints about a new product to be unveiled in May which he reckons will be “a third arm of the Palm business” (presumably alongside smartphones and the OS).

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