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TomCayman: (IMHO) it is Symbian that will win out

I think you're going a bit overboard here. Even in the UK, Psion's home turf, Palm still commands a 60+% marketshare. In other parts of the world, Psion is fairing far worse, with close to zero sales in Asia.

PalmOS hit critical mass, just like how MS Windows 3.0 hit critical mass, so I don't forsee how any other OS will win out in the PDA space, at least not without Palm faltering badly. Look at competing operating systems to MS, namely Apple and Unix. Even though in certain niche fields, both are used almost exclusively (graphic design for Apple, finance/servers for Unix), overall they own what, a mere 20% of the marketspace?

According to the press releases, it looks like EPOC will become the kernel, the closest layer to the hardware, and the PalmOS will sit on top of that, so both will share space in handset devices. Now developers will have a choice of either coding to the EPOC kernel or the PalmOS interface. Given that there are currently 5 million Palms out there and an active Palm development community numbering in the tens of thousands, verses almost zero EPOC devices/developers/etc, just what do you think developers will do? If the press releases are true, it looks like Palm has already won.

I believe that this was a do or die issue with Symbian. QCOM is releasing the pdQ and NOK signed up to make a Palm cell phone. My bet is that you'll see more handset makers do deals with Palm, since they can't afford to overlook the market leader. And if Symbian didn't do something about that, they'd have lost by default.
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