Foxconn, Compal Communications Grab Palm's Orders for Smartphones

Taipei, Oct. 25, 2010 (CENS)--With Palm poised to stage a comeback in the market for smartphones, Foxconn Technology Co., Ltd. and Compal Communications Inc. have both reportedly landed contract orders for such devices from Palm, according to industry sources.

The informed sources indicated that Palm, which halted production of most of its smartphones early this year due to financial crisis, has recently resumed its orders to contract suppliers, with Foxconn to supply four to five new types of Palm's smartphones for sale in 2011, and Commpal Communications to deliver one new type.

Accordingly, Palm's new smartphones manufactured by Foxconn and Compal Communications will all adopt the brand's Linux-based mobile operating system, WebOS, which will more or less allow the two suppliers to gain manufacturing familiarity with Palm's Pre Plus and Pixi Plus phones.

Worth mentioning is that Todd Bradley, executive vice president of Personal Systems Group of HP, which has helped Palm tide over its operating crisis, confirmed that his company will launch a WebOS-installed tablet PC, PalmPad, in 2011. Also, Foxconn is believed to supply the new tablet.

HP decided to acquire Palm for US$1.2 billion at the end of April 2010 in a bid to take advantage of the latter's technologies to explore the mobile devices segement. Therefore, industry insiders pointed out that debut of PalmPad is a product of the acquisition after several months of HP's unstinting efforts to put Palm back on track. This has benefited Foxconn.