Apple is moving the target

Over the last few weeks, Palm has been attempting to generate buzz around the Pre, which is expected to hit the market later this year. Palm believes that this new device will draw existing iPhone users as their 2-year contracts come up for renewal. As I have noted before, I have serious doubts about the efficacy of this strategy, and Apple is making it even more of a long-shot than ever.

On March 16, Apple previewed the iPhone 3.0 operating system. It includes some pretty rudimentary upgrades, like the ability to cut, copy & paste. Unfortunately, the new OS still doesn't support Flash, which a serious limitation on effective web browsing. But it does include some game-changing features like peer-to-peer capabilities. According to the company, users will be able to link up with other iPhone users via stereo Bluetooth, making their media files instantly available. I would imagine that this can easily be extended to include more mundane filesharing, too.

For corporate IT managers, this will mean that smartphone security policies will need to be updated and users will need to be cautioned about sharing sensitive data via Bluetooth.

Nevertheless, I believe this puts a major obstacle in the path of Palm's return to relevance.

More information from eWeek.com: Apple's New iPhone OS
More info from Apple: iPhone Home Page