Smartphone maker Palm (PALM) is “very far along” on a second, smaller device running its new WebOS operating system, according to TechCrunch’s Michael Arrington. This would complement the Pre, set to launch with Sprint (S) sometime in the next two months, perhaps with a different carrier.
This is an obvious move and should come as no surprise. While the Pre resembles a futuristic version of Palm’s long-running Treo line, the company also needs a WebOS version of its smaller Centro series, which has been especially popular with women.
The key: Making sure the new phones have much better margins than the old ones. While the Centro has been a big seller unit-wise, its margins stink.