To concentrate more on forthcoming mobile Palm Pre, which will have about 7.4GB of user-available memory, stereo Bluetooth and multimedia messaging services, Palm confirmed that it is dropping the Palm OS, which was introduced in 1996 and proved an instant hit with consumers and business users. It will be officially retired and the company's Centro platform will be the last to use the software, said Palm president Ed Colligan to its investors.

"There will be no more PalmOS products," he said. "We will move to webOS as our core operating system, in addition to supporting Microsoft Windows products in the enterprise segment of the market". Palm eventually sold its software division to Access, and PalmOS became GarnetOS.

Colligan disregarded hints from Apple that it may sue Palm over the new Pre device, likening the situation to two porcupines circling each other but being careful not to get pricked.

"There are no issues with Apple over patents right now", he said. "We have built a very extensive patent portfolio in the mobile space. The reason you do that is to have a defensible position in the marketplace".

The device will have about 7.4GB of user-available memory, stereo Bluetooth and multimedia messaging services.