Notwithstanding Windows (7) Phone's launch yesterday, some people believe that the only smartphone platform truly competitive with the iPhone is Palm's WebOS. But Palm's handsets are being overshadowed by Android, RIM and the iPhone -- and maybe Windows later this year when 7 handsets start coming out.

By most accounts Palm's handset sales have not met expectations, although the company is rolling out with other carriers in the US and abroad. However if sales don't improve the company will be under tremendous pressure. That raises again the question of an acquisition. 

However the most likely company to buy Palm, Microsoft, now says with the launch of Windows Phones it doesn't need to:

Asked whether Microsoft might ever buy a more fashionable rival, like BlackBerry maker Research in Motion, Ballmer said: "The word 'ever' is a big word but I certainly don't feel like that's the right strategy for us today."

He also said no major change should be expected in the company's policy of charging license fees to handset makers for its mobile software. Microsoft is the only major company to still charge a fee for using its mobile operating system.

"We don't comment generally but there's nothing that interestingly new," he said. Later, he told a news conference: "We plan on staying with the model that we are on."

I own the Pre and I've grown to dislike the phone over time, from ambivalence at the start. However, I think the major failures are ones of marketing and branding rather than design. Still, in retrospect, the Pre launched with too few apps. In addition, the absence of voice search or voice control and a virtual keyboard were and are also problems with the user experience. 

There were some poor choices and miscalculations by Palm executives. While the WebOS and new handsets offer a big improvement over the Windows Mobile Treo and Centro, they aren't dramatic enough to capture consumer attention in a market that is crazy with new product launches and competition. 

Palm will be in an increasingly tough position unless it gets a boost from newer carriers or overseas. Perhaps if it had launched originally with Verizon instead of Sprint it might have achieved more sales. We won't know. Now, at Verizon, Droid and BlackBerry dominate. Maybe the Pixi (as a low-cost feature phone upgrade) will see some adoption there. 

I suppose Nokia is potentially a candidate to acquire the company -- althought that's also a longshot with the company now developing and building on two operating systems.