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Sony's the company that will take the Palm OS into the future. Palm as a hardware company is finished -- they don't have the hutspah to do what it takes; even Handspring TRIED something different! We'll see the same old Vx/m5xx form factor rehashed too many more times before Palm as a hardware company fails or is relegated to competing against Royal for low end marketshare. Palm Source will survive, but if they are lucky, they will be bought out by Sony and then you'll see a REAL techno war between PPC and... Sony (i.e., the 'new' Palm!).
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