Many years ago, there were advertisement on the inside covers of comic books for something called Dynamic Tension. The copy talked about a big bully kicking sand in the face of a the reader who was called a "98 pound weakling". The reader needed "Dynamic Tension" to build a Charles Atlas type muscular body, to protect oneself on the beach . There isn't any question that Palm kicked alot of sand in the face of Handspring when it drive it out of the pda business. Guess what is about to happen when Palm walks on Hand's beach and expects to coexist? I sincerely believe that Hand is going to kick alot of sand in Palm's face. The way they do that is to upgrade their gsm product so that it is not only cheaper, but it is vastly superior to what Palm is offering.

Already Treo has a big advantage because the Palm Tungsten W isn't a real phone. But I think Hand is going to go much farther. My guess is that the Treo 270 will be upgraded significantly with a new display and an sdio slot, and maybe even a faster cpu with more ram. Hand will give Palm a taste of its own medicine except it will use superior technology not price as the weapon. That is why Hand is keeping inventory of the Treo 270 so low. It is because it wants to transition to the newer device with very low inventory levels in place. It also makes strategic sense that the Sony Ericsson phone is coming out soon, and this will keep them from getting a foothold. Finally, Hand is about to do battle directly with the TMobile pocket PC phone on the TMobile site and having a few more technological improvements in place can only help in this direct confrontation. All of this ties in beautifully with what the manager of the Cingular store said. An improved Treo 270 is in the works imo in January or February. Then Palm will have to wonder whether to spend its limited assets releasing the Tungsten W to a poor reception, or whether it should leave the beach instead. I agree with Mirandu, that the OS 5 unit will not be due until late spring, early summer. I think Hand will have a two tiered pricing strategy and that the revised treo that comes out in the January/February time frame will occupy the inexpensive price slot in the $300 so that the OS 5 unit can occupy the $500 price category.