The iPhone climbs to No. 2 in terms of general smartphone OS market share in the U.S., while Windows Mobile drops to third. Research In Motion’s BlackBerry OS still tops the list, and in fact does so with an impressive gain in customers over the course of 2009, according to a breakdown of the report by DailyTech.

comScore compiles its results for the smartphone survey every three months, collecting data from thousands of U.S. consumers. The latest three-month period, the one which is detailed in this latest report, ended in October of this year.

RIM, as mentioned, saw pretty significant growth throughout the year. At the beginning of 2009, it had just under 10 million customers, and according to the comScore report, it now boasts 14.96 million in the U.S. RIM has been employing aggressive pricing strategies to compete with the iPhone’s success, including handset giveaways and deep discounts, and it looks like the BlackBerry maker’s efforts have paid off nicely.

Windows Mobile actually showed negative growth — it’s the only smartphone company that can make this unfortunate claim, and now has around 7.13 million users. Buyers could be shy of committing to a device that runs Windows Mobile 6.5 when version 7 is set to launch sometime early in 2010. Everyone else, including Palm’s WebOS, Google’s Android, and Symbian all experienced modest gains. Android still tails all others, but during the most recent period it broke the 1 million mark, and I’d expect to see it surge even further on the strength of the Droid in upcoming surveys.

As for the iPhone, it grew to 8.97 million users over the period ending in October. That’s a pretty impressive lead over Windows Mobile, though it means Apple still has a lot of ground to make up before it can snatch the crown from powerhouse RIM. It’s even more impressive when you consider that at the beginning of the year, the iPhone only had around 5 million users, meaning it experienced about 70 percent growth over the course of 2009, a performance that likely has a lot to do with the release of the 3GS and the significant price drop and continued sales of the 3G model.

Overall, the smartphone market continues to do well. Roughly 11.8 percent of the American population claims to now own one, according to this most recent poll.

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ChangeWave’s last survey took place in June of this year, and since then, Apple’s stock has jumped 5 percent. The last time there was a big jump in Apple sales, the iPhone 3G was introduced, and it lasted six months before the rise started to plateau, though it always showed positive growth. If that trend is any indication, the iPhone 3GS should continue to inflate sales until the new year at least, which could put Apple in a position to overtake RIM.

RIM fell one percentage point from the last survey period in June 2009, from 41 percent to 40 percent. The BlackBerry has been steadily falling since January of 2008. The smartphone maker does have the Storm 2′s release on the horizon, but competing against major, new devices like the Palm Pre and the 3GS will be tough.

Speaking of the Pre, Palm is also included in the survey, and remains behind in third place with only 7 percent market share. When ChangeWave started conducting its survey in June of 2006, Palm owned 36 percent of the market, topping RIM, its only close competitor, which had 30 percent. Worth noting is that this is the first survey in nearly two years where Palm didn’t lose some of its share.

Aside from being the only company to show positive growth between surveys, Apple is also the leader going forward in terms of planned purchases by respondents. Thirty-six percent of those surveyed who plan on making a smartphone purchase in the next three months are planning on choosing an iPhone. RIM follows with 27 percent choosing BlackBerry devices.

Apple also leads in another very important category: customer satisfaction. A whopping 74 percent of respondents say they are “Very Satisfied” with their iPhones, while only 43 percent of RIM customers say the same about their BlackBerry devices, the next closest cell phone on the survey. It’s a telling gap, and one which explains why Apple could overtake its perennial rival in the U.S. sometime in the next six months. A new product launch in June could seal the deal.

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Based on a thousand-point scale, 1,148 business users were asked to rate smartphones on five weighted criteria: ease of use (29 percent); OS (23 percent); physical design (21 percent); features (16 percent); and battery life (11 percent). The iPhone scored 803, up from 778 last year, and far above the industry average of 724 for the 2009 survey. That number, 724, was also the score of the second place finisher, RIM’s BlackBerry. The rest of the survey, Samsung, HTC, and Palm all scored below 700.

Interestingly, Apple’s efforts to sell the iPhone in the workplace with enterprise features like Exchange support may not be the driving factor in the iPhone’s increasingly popularity among business users. While nearly half of smartphone users report downloading business utility applications to increase productivity, more than half download third-party games. As the App Store utterly dominates that software genre, it can only mean good news for the iPhone in business in the future. As for the general consumer, the iPhone scored even better in the survey.

Some 3,221 smartphone owners rated their devices as follows: ease of use (30 percent); OS (22 percent); features (21 percent); physical design (18 percent); and battery life (9 percent). Apple scored 811, above average in every area except battery life. No other competitor managed to score above 800, with second-place LG being the only other manufacturer to score above the industry average. Third place went to the RIM BlackBerry, but more interesting was the lackluster performance of Palm.

It appears the Pre and webOS have yet to impact positively for Palm in the survey. Further, 22 percent of smartphone owners want Wi-Fi in their next handset, something the forthcoming Palm Pixi curiously lacks. Consumers are also looking for a touch-screen interface, 21 percent, and GPS, 17 percent. The iPhone has all those features, but those features all require something the iPhone needs more of: battery life, battery life, battery life. Let’s hope Apple is paying attention to that part of this survey, too.

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That appears to be the sole purpose of the incremental update, too, besides a few standard maintenance and bug fixes. Maybe Palm is hoping this is the time Apple will just roll over and acquiesce to having another manufacturer’s device take advantage of its proprietary software. Not likely.

So who’s the villain here? Is it Apple for being the big bully and not letting Palm play along with its iPod and iPhone devices? Or is it Palm, which isn’t satisfied with its own solution and has to go leeching off the better software design of its rival, despite the repeated objections of both that company and organizations governing its devices’ use?

Here’s an excerpt from the USB-IF’s letter (via Softpedia) back to Palm in response to the smartphone maker’s complaint against Apple:

Your letter also states that:
“Palm will shortly issue an update of its WebOS operating system that uses Apple’s Vendor ID number for the sole purpose of restoring the Palm media sync functionality.”
I attach for your information the USB-IF’s adopted and published policy regarding Vendor Identification Numbers (VIDs). Under the Policy, Palm may only use the single Vendor ID issued to Palm for Palm’s usage. Usage of any other company’s Vendor ID is specifically precluded. Palm’s expressed intent to use Apple’s VID appears to violate the attached policy.
Please clarify Palm’s intent and respond to this potential violation within seven days.

So, according to the Forum at least, Palm is in the wrong here. And why wouldn’t it be? We can lament all we want the fact that iTunes doesn’t provide an API to hardware manufacturers so that we could use our Sansa, Zune, BlackBerry, and whatever other devices with it, but the fact remains that it doesn’t, and because of that no company really has the right to commandeer the use of the software for its own purposes. What if the DSi started doing that with Sony’s Media Go PC software for the PSP? Obviously, it wouldn’t fly.

And it’s not like iTunes media is inaccessible for devices other than iPods and iPhones. BlackBerry’s recently released Desktop Manager for Mac allows for syncing with iTunes playlists. It does so by reading the iTunes library .XML file, which is readily available to all programs, and it handles the actual syncing process on its own. It’s something Palm could easily mimic.

I was rooting for the little guy, but as this drags on, I’m beginning more and more to take Apple’s side. Palm is looking increasingly like it’s unwilling to try to stand on its own. No doubt the update war will continue, but to what end? Apple will eventually win, and Palm’s time would be better spent trying to design an equally elegant solution of its own.

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Steve Jobs, Jon Rubinstein, Ed Colligan

According to Bloomberg, former Palm CEO Ed Colligan rejected an offer by Steve Jobs to refrain from hiring each other’s employees.

Similar allegations have been made regarding Apple and Google recently, though in that instance the policy was supposedly an informal and undocumented one, but with Palm there are “communications” involved.

“We must do whatever we can to stop this,” said Steve Jobs on the issue of “poaching” employees, the practice of hiring away highly-capable individuals from one company to another. In the most notable example of employees sharing between the two companies, Jon Rubinstein, SVP of Apple’s iPod division until 2006, later became Executive Chairman of the Board at Palm, and was a driving force behind the company-saving Pre initiative. This seems to have not sat well with Steve Jobs, hence his “communication” with Ed Colligan in 2007 about Rubinstein attempting to recruit more Apple employees. Colligan’s reported reply was short, but succinct.

“Your proposal that we agree that neither company will hire the other’s employees, regardless of the individual’s desires, is not only wrong, it is likely illegal.”

It certainly would be a violation of anti-trust law, if it happened. Considering this incident occurred two years ago, it’s remarkable that the Department of Justice hasn’t been interested, which Palm claims it isn’t. Of course, it’s possible Colligan didn’t release details of a “likely illegal” offer until recently, but that seems odd, too. Also odd is the fact that no one knows what exactly Jobs wanted Colligan to do.

According to Bloomberg, the “exact details of what Jobs proposed to Colligan aren’t known; Jobs didn’t mention a proposal in the communications reviewed by Bloomberg.” So, to sum up, there is nothing written down, the “communication” was verbal, two years old, and originates from a company with an increasingly bitter relationship with Apple.

Don’t expect to see Steve Jobs doing doing a perp walk anytime soon over this one.

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Once again, it’s that special time of the week when we all join hands, take a deep breath and exhale as we take a spiritual journey through the latest app picks for iPhone.

Before we reach app Zen, however, it’s time for a refreshing run through of the week’s iPhone news and Apple happenings.

Credit cards at the ready, the week opened with the resurgence of the Apple tablet rumor. Fueled by word from component suppliers in China, the rumor is that we could see an Apple tablet retailing by October this year.

One year on from the App Store’s launch and Apple is feeling particularly pleased with its paradigm shifting achievement. So pleased, in fact, that it dropped a big number in celebration: 1.5 billion App Store downloads in the first year. Impressive indeed. I wonder if Nokia, Palm or RIM will ever catch up?

Our own Clayton Lai returned this week with “Jailbreak,” an ongoing series that’s all about getting the most out of your jailbroken iPhone. His latest offering explains how to spruce up your iPhone’s lock screen with calendars, Twitter feeds and more.

Still on the subject of jailbreaking, over on the iPhone 3GS there’s a new unlock in town: purplesn0w. It improves on the Dev Team’s ultrasn0w, providing a much more stable unlock, while improving battery life and Wi-Fi connectivity.

It seems that most users won’t notice any difference with the latest iTunes update, however Palm Pre owners are in for a surprise sandwich filled with the meat of disappointment: Apple has blocked Palm Pre syncing in iTunes. Pre owners, I adore your device, but it was bound to happen, it has happened, get over it.

And finally, Google has brought local web search to the iPhone. The service makes use of the iPhone’s 3.0 software update, which now includes HTML 5 Geolocation API support in Safari. This basically means that web sites can determine your location and provide you with relevant and useful data. By which I mean adverts, lots of adverts.

Moving on to the picks, this week I’ve been looking at Worms, Spell Number, Zombies & Me and Tap Star.

Worms ($4.99)
This brings me back to the old days — all the cool kids got their console fix with the SNES or Genesis, but I had an Amiga 500. For a time, I had very little interest in chubby Italian plumbers or a blue hedgehog with an attitude problem. It was all about British dev studios churning out classic games: Sensible Software’s Cannon Fodder, Ocean’s Robocop and, of course, Team 17 with Worms. Featuring a brigade of cheeky, well-armed worms, the game is a turn-based strategy, incorporating a bevy of weird weaponry, perfect for extended multiplayer gaming sessions. For the retro fanboys with a penchant for the Amiga, this is a definite download, but it’s also worth checking out for newbies looking for an explosive (and amusing) strategy fix.

Spell Number (Free)
So you’ve updated your iPhone to OS 3.0, or you’ve taken it one step further and bagged yourself an iPhone 3GS. Either way, there are a few tweaks and improvements that may make your Apple device even more wonderful. One such tweak, provided by Spell Number, activates Emoji — colorful and scrumptious emoticons, available exclusively to iPhone users over in Japan. Simply download Spell Number, enter the number 91929394.59, then press the Home button, go to Settings → General → Keyboard → Japan and activate Emoji. Unlike various other Emoji-activating apps for iPhone, this one is absolutely free and, notably, works for OS 3 and the 3GS. This is a definite download, especially for folks who would like to spice up their SMS and email messages with some Emoji goodness.

Zombies & Me (99 cents)
The slow-moving dinosaur of the game industry, EA, recently founded its own micro-game production studio to start churning out potential iPhone hits at a fast rate — one a month — while experimenting with new gameplay styles. Zombies & Me is the first release as part of this initiative and, surprisingly, it looks gorgeous, sounds scrummy and plays well, too. The premise is simple, Granny’s house is about to be raided by hungry zombies and it’s your job to dash around the garden, leading the undead in to various bombs, while trying not to have your brains sucked out. Serious kudos to EA for stepping away from the big brand franchise factory methodology and investing in something a little more experimental.

Tap Star ($4.99)
Finally a viable competitor to Tap Tap Revenge hits the App Store. Created by Epic Tilt and with serious support from Sony Entertainment Music — clearly wanting to get in on the App Store game to leverage some of its content — comes Tap Star, a new rhythm action game. While Tap Star lacks the character and flair of Tap Tap Revenge, it makes up for this failing by bundling tons of tunes from Sony’s catalogue, including tracks from Elvis, Cyndi Lauper, Pink and Britney. I’ll be sticking with Tap Tap Revenge, it’s just so much richer, but fans of Sony’s catalogue in particular may want to check out Tap Star.

That’s all the picks for this week. I’ll be back in seven days with more news from the week and picks from the App Store.

In the meantime, what apps have you been using this week?

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It appeared to be just another innocuous third-decimal-point minor update, but today’s release of iTunes 8.2.1 carried more than the usual “bug fixes and stability improvements.” (Those are still there, too.) For owners of the recently introduced Palm Pre unfortunate enough to have already downloaded and installed the update, it also ends the iTunes playlist syncing party. It was inevitable, since Apple clearly regards iTunes syncing as the exclusive, sacred territory of its own devices, but it probably still has a few Pre owners trying to turn back the clock.

TUAW’s Christina Warren first suggested that Pre syncing was blocked with this update, having spotted a crucial passage in the release notes stating, “Tunes 8.2.1 provides a number of important bug fixes and addresses an issue with verification of Apple devices.” While Warren didn’t have access to a Pre to test her theory herself, many Pre-specific sites and bloggers quickly confirmed that it was indeed the case that the device is no longer recognized. So far, the reports I’ve seen are specific to Macs, but I doubt the Windows version of iTunes would retain Pre syncing.

Interestingly, when Pre owners plugged their devices in, they found that iTunes came to the front, just as it does when you plug in an iPod or iPhone, but no device showed up in the source menu. This suggests that the program is still aware that the device exists, but that Apple has introduced some kind of blocking software to stop the process there. It also suggests that it might be possible for Palm or independent devs to create a workaround to get syncing functioning again.

In the meantime, if no fix ever does surface, Pre owners can always use doubleTwist or The Missing Sync for Pre to get around Apple’s blockade.

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Apple’s recent tech note regarding third parties using iTunes’ syncing has caused plenty of discussion. Should Apple “break” the Pre’s ability to sync as an iPod? Why would Cupertino do this? The comments across the web vary in their opinions, so I’ll throw mine in here as well.

First, it’s no secret what I think of Palm’s decision to hack its way into iTunes as an iPod. I also believe Apple should put a stop to it. But in a broader view, this isn’t just about Palm or the Pre.

Let’s look at the three most common positions in this debate.

Apple hates competition

There are those who think Apple “breaking” the Pre’s ability to sync is because Apple doesn’t want competition. This is the view I have the least patience with, and disagree with the most.

I have no idea how these people define “competition,” but I fail to see how any reasonable definition could possibly include not writing your own software, and instead hacking into someone else’s. The whole competition angle is a red herring, in my opinion. It has nothing to do with that.

Grin and bear it

There are those who think Apple doesn’t have to like it, but shouldn’t waste the time or resources to put a stop to it.

Fair enough, I suppose, and if a large effort were required, there may be some value in this. But the details I’ve read seem to indicate the time needed would be pretty small. Seems to me it could be easily rolled into the next iTunes update and, with a new OS and iPhone model coming out now, the next bug fix release is likely to be pretty soon.

Close the hole that’s being hacked

And there are those, like me, who think Apple should close the “loophole” that allows Palm to do this in the first place. I touched on why I think this before, but here’s a summary:

• While third-party players can use iTunes (as a mass storage device), and many of them do, the “sync” capability is a differentiating feature Apple wrote and provides to iPods only. Common sense would suggest it’s Apple’s to allow (or not) for other devices. Palm’s feigned surprise is disingenuous at best. Obviously Palm know it’s a great feature or it wouldn’t have hacked the software in the first place.
• The idea that someone can trick iTunes into being an iPod never came up before. One could argue it’s a hole in iTunes that needs to be closed.
• Apple will get calls for support if this is not stopped and there are issues with Pre syncing. I would argue that the release note was more a preventative measure (though futile) against that than it was any specific warning to Palm, because no such warning should be required when a third party hacks your software — it ought be understood.

But there is another reason, one even more important than the others. Until now, no one exploited the hole because they didn’t know about it. Palm had the advantage of lots of ex-Apple talent, so it knew just what to do. Good for Palm, but now that it’s shown the smartphone world how to pull this off, what’s to stop others from doing it as well?

In other words, forget the Pre, or even Palm. There’s an exposure for iTunes here that could have BlackBerrys, LGs, Nokias, etc. all passing themselves off as iPods. Again, the obvious question to me is that, having learned there’s this hole in iTunes, Apple should take steps to close it. An iPod can be an iPod, and the rest can be, well, the rest. If they want seamless syncing, they can write their own software to do it.

I have no idea what Apple will do here. I’ve already stated I think the tech note is less a warning and more a preemptive “CYA,” but a company that prides itself on customer service will not want to continually refer Pre owners to a tech note. To me, that’s a short-term thing. Ultimately Apple needs to close that iTunes hole.

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The Palm Pre is here, and while it hasn’t exactly felled the Goliath of Apple’s iPhone, it does have some features that are making iPhone users jealous. One is greater built-in social networking connectivity, including Facebook integration. The implementation of Facebook in Palm’s WebOS basically allows your Pre phone to store Facebook friend info in your address book, and then message those people directly from the phone.

Zynga wants Apple to make a similar move towards greater Facebook connectivity with the iPhone, but the game company has different motives, and very different integration goals as a result. Specifically, Zuora is looking for Apple to implement a platform-wide solution for a feature that it currently builds into each of its individual apps: Facebook Connect access.

Facebook Connect, for those who don’t know, allows users to enter their Facebook credentials to log into an app (web or otherwise) for a variety of purposes, including commenting on forums, and game score tracking and cross-platform integration. So, in Zynga’s case, for instance, it allows your Word Scramble scores on your iPhone and your Scramble scores on Facebook to be tracked across both.

Zynga clearly has a good reason, then, to want Apple to bake Facebook Connect right into the iPhone platform, since its users would then be saved the extra step of having to sign in every time they download and play a new Zynga game. It probably wouldn’t take much effort on Apple’s part to include the service, especially compared to the work required by game makers like Zynga to include it each and every time they produce a game. Including a Facebook Connect API would be much more efficient from a developer’s perspective.

While it makes lots of sense for companies in the social casual gaming sense like Zynga to push FB Connect integration, does it make sense from Apple’s perspective? If the benefits of inclusion only appeal to the relatively narrow audience of regular Zynga players who use both Facebook and iPhones, I doubt Apple will go out of its way to come up with a platform-wide solution on its side of things.

But the potential of Facebook Connect, or Google Friend Connect for that matter, could appeal to a much broader audience than just social game devs. Because FB Connect leverages the power of your social networking sites in the context of virtually any web-connected application, the possibilities that present themselves when you combine this tech with a device as prolific and app-oriented as the iPhone are endless. In theory, you could then have one cohesive identity for all web, phone, and app usage, all from your smartphone, where it makes sense, as opposed to on a computer, where that kind of access would present much more of a security concern.

Apple has to go somewhere from iPhone OS 3.0, and unlike the release of 2.0, user complaints and requests aren’t so deafening as to point the way (read the last paragraph, especially) for future feature inclusions. Facebook Connect integration is fertile ground, especially if one of Apple’s goals is to continue appealing to developers in new and interesting ways. Plus, Palm dropped the gauntlet on greater social network connectivity. Time to pick it up.

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Harry McCracken at Technologizer wrote a nice piece about the virtues of hardware keyboards on smartphones.

I think one reason a keyboard argument even exists is because when competing in a given market, you have to tag a competitor’s hot product with a “missing feature,” and then provide that feature. (How many manufacturers claimed FM radio and replaceable batteries were glaring omissions from the iPod, only to find adding it to their devices made no difference?) I think the Palm Pre — mentioned in the article — has a hardware keyboard partially to trumpet having something the iPhone lacks (and partially because it’s easier to implement than a software one).

McCracken lists four benefits he believes a hardware keyboard provides:

1) Familiarity and lack of learning curve. The iPhone’s on-screen keys and autocorrection can be utterly befuddling when you first encounter them…

True enough, but this is the result of two things, only one of which is tied to the software keyboard. The flat, smooth keys are definitely unlike any keyboard most people have typed on, and take getting used to. However, autocorrection is a function that exists in hardware keyboards as well. Even keypad devices used T9 (or similar) to help “guess” your words. If Apple introduced a hardware keyboard tomorrow, an autocorrection learning curve would still exist.

2) Tactile feedback.

McCracken discusses this at length, and I do not dispute it. I’m very proficient on the iPhone’s keyboard, but even after two years I can’t say I’m totally used to not getting that feedback. I would love to see this solved, but I think the RIM Storm’s simplistic (clumsy?) attempt at adding it is a failure. I’m not sure how this can be properly solved on a software keyboard, but I would welcome it.

3) Two-handed typing.

Here McCracken is referring to thumb-typing. He can thumb-type on any hardware keyboard, but not on the iPhone. I use my index finger on smartphones, so to be honest I can’t say this “benefit” of a hardware keyboard had occurred to me. I know that requests for a landscape keyboard on the iPhone were primarily by those who want to thumbtype. They’ll get their wish in iPhone 3.0. Will that do it?

4) No resolution penalty.

This one struck me the most because I see an alternate view as a disadvantage to hardware keyboards.

What McCracken refers to is the fact that when a software keyboard is present, it takes up a large chunk of the screen. There’s no denying this, and no question it’s a drawback of a software keyboard. Though I think the statement “[T]yping e-mails that are more than a couple of sentences long presents a challenge” is overstating it. I’ve written many emails, notes, and even blog entries a lot longer than a couple of sentences. Still, his point is well taken.

Now I’d like to provide a list of what I think are software keyboard benefits:

1. No device size penalty

This is the alternate view of #4 above. With a software keyboard, the screen gets smaller, but with a hardware keyboard the entire device gets bigger. It’s fine to say a device feels great in the hand, but then you flop out the keyboard and it becomes a bit clumsy. The balance is off. It sits in your hand differently. I think people thumb-type with these because once it’s opened you almost have to handle it with two hands. It’s not at all uncommon for me to type on the iPhone with one hand. I like the fact that the device doesn’t change physical dimensions on me.

2. Portrait and landscape

A software keyboard can change to suit the user or application. A great example of this is orientation. A hardware keyboard sits one way, and that’s it. The Pre’s, for example, is portrait. That may be my preference, but if you’re a landscape junkie, too bad.

3. Appears automatically

I don’t have to grab the thing and flip it out, or up, or over when I need it. The device knows when I need it and presents it to me. Again, this makes one-handed typing for short things a lot easier. I also don’t have to put the thing away when I’m done.

4. Can be changed with software updates

Adding new layouts for other countries is a relatively simple matter. In addition, modifying the properties is possible (for example, the systemwide availability of landscape mode for OS 3.0 mentioned above).

5. Allows specialty keys

For example, in Safari there’s a special key that enters “.com”. But it doesn’t stop there; if you press and hold that key a menu pops with other common URL endings (e.g., .net, .edu). Nice. Also, when typing regular text, press and hold the vowels to see a popup of accented characters.

I could also list no keys popping off, or getting mushy, or any other of the mechanical things that can go wrong with a hardware keyboard. I believe the inherent advantages and flexible nature of a software keyboard will eventually win out over the rigid inflexibility of the hardware variety, though I don’t claim this will happen anytime soon. Well, unless they get that tactile feedback thing solved; then I think hardware keyboards are toast.

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Former Apple VP Jon Rubinstein will be shifting from his role as chairman at Palm to the company’s new CEO. As many Apple fans already know, Rubinstein was a prominent member of Steve Jobs’ core team after his original founding of NeXT in the early ’90s.

Deep Ties With Apple

When Rubinstein moved to Apple at the request of Jobs in 1997, he diligently worked to bring the PowerMac G3 to market and simplify Apple’s product line in order to help turn the company around. His first big project was the creation of the iMac where he was responsible for some of its signature features, including USB peripherals and a lack of a floppy drive.

As VP of Hardware Engineering, Rubinstein was also responsible for overseeing the production of the G4 and G5 Macintoshes and became known as the man who explained “the megahertz myth.” As Apple began to shift its marketing strategy towards putting Macs at the center of the “digital lifestyle,” Rubinstein and his team were responsible for (under the direction of Jobs) the creation of the first iPod. When the success of the iPod began to take off, Apple spun this into its own division, with Rubinstein as the vice president in charge.

Life After Apple

Rubinstein left Apple in 2006 and eventually join Palm, leading its research and development efforts. With the talent and skills he put to use while at Apple at his disposal, it’s no wonder many see his latest project, the Palm Pre, as a seductive competitor to the iPhone.

All other opinions aside, it’s interesting to note that Rubinstein joined Palm when it was at a point similar to Apple, when Jobs and Rubinstein came over from NeXT in the ’90s. On the whole, the introduction of the Palm Pre, the new Palm webOS, and the leadership of Rubinstein as the company’s new CEO, all lead towards a very interesting direction for Palm and its impact as a competitor to Apple.

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Palm’s been working hard to mastermind the Pre launch this Saturday, but I think they’re getting it all wrong. Now Sprint has joined in. It’s reached the point where they look like a couple of companies seriously in need of some business acumen.

Early reviews of the Pre are promising, yet I wonder if the bumbling, stumbling, Three Stooges approach Palm and its partners have used from the Pre’s introduction to its launch aren’t enough to ruin it anyway. Looking back, it’s hard to think of anything Palm did right with the launch after its introduction demo at CES in January.

Here’s a brief recap of everything that seems to have gone wrong.

• You had Palm investor Roger McNamee shooting his mouth off so badly that Palm actually had to issue a retraction of his statements. Way to control the message, guys.
• You had rumors about there being a constrained supply of Pres. This was followed by an outright admission. It doesn’t bother me if Palm feels the need for supply manipulation, but I disagree with it.
• There was a big deal about Best Buy selling the Pre with an instant $100 rebate instead of the mail-in rebate at Sprint stores. But then we found out they’re hardly letting Best Buy have any phones.
• The rebate itself is only good for five weeks (until 7/11), at which time the Pre will be $300. With the constrained supplies it makes you wonder how many people will actually save $100.
• Meanwhile, you’ve got developers who can’t get the SDK, and…
• Verizon blabbing that they’ll have the Pre in six months, potentially killing early sales.

And now, as the straw that broke this camel’s back, you have the sideshow from Palm and Sprint about how it’s actually good if there’s no lines or crowds for the Pre.

A Palm spokeswoman, Lynn Fox, said that people who equate success with packed stores may be disappointed, because the company will take time to generate buzz with the new phone. “We’re not like Apple,” she said.

Yes, equating a packed store with success is a mistake. They’re probably just their to return your merchandise or ask about a competitor. Well, Lynn, I can vouch for the fact that Palm is definitely not like Apple. They like their stores packed. Silly Apple.

And Mark Elliott, a spokesman for Sprint, said the company not only didn’t expect long lines for the Pre at its 1,100 stores — it didn’t want them.

BWAHAHAHA! Well of course they didn’t want lines. In fact, Sprint plans to shoo people away if even the merest hint of a line forms. Shoo! Go away, people! Nothing to see here.

“We’re actually trying to manage the exact opposite,” Mr. Elliott said.

Well, your strategy so far is right on track for that. I do have one question though: Are you insane?

“What we’re trying to do is not have people backed up waiting so customers feel rushed,” Mr. Elliott said. “We want each customer to get the experience.”

Which experience is that? The one of being lonely in the store because you don’t want any crowds, or the one of deciding to buy a Pre only to be turned away because of the constrained supply?

Success “is not about having a line out the door,” he said. “It’s about being able to treat each customer and make sure they’re happy with their decision.”

A certain company I know of believes that success is both. They can have packed stores and lines and an incredibly happy and satisfied customer base all at the same time. That sounds a lot more like success than what you’re trying to manage.

“Not like Apple,” indeed.

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A big story recently is how the Palm Pre syncs seamlessly with iTunes. It does so by making itself appear to be an iPod to iTunes.

Further details came out during an interview at the All Things Digital conference that indicate only non-DRM music and photos can be synced. It’s unclear whether non-DRM videos sync, or whether it syncs other iTunes data (bookmarks, contacts, podcasts, etc.).

Even with those restrictions, the ability to plug in and use iTunes to sync music is a pretty big deal. How can Palm do this? Why did they do this? What, if anything, should Apple do?

Back in Time

To help understand this, consider that Palm’s Executive Chairman, Jon Rubenstein, is an Apple alumnus. Steve Jobs approached him in 1990 to run hardware engineering at NeXT. Ultimately, NeXT couldn’t compete in hardware and became software-only. After disassembly of NeXT’s hardware manufacturing, Rubenstein formed a new company, Firepower Systems, that was bought by Motorola in 1996.

What did Jobs think of Rubenstein? Well, Jobs approached him after Firepower’s sale to work for Apple. Keep in mind, at this time Jobs was not CEO, or even the interim CEO. He was simply a “consultant” to Apple.

What did Rubenstein think of Jobs? Well, he accepted a position at Apple. Remember, at that time Apple was beleaguered, doomed, nearly bankrupt, etc. Many claims were exaggerated, but no one considered Apple a smart gig at the time. Further, Rubenstein had just sold a company; he could have kicked back, or written his own ticket for a more impressive job. Still, he went to work for Apple.

Rubenstein’s years at Apple were a great success, ones that saw him help to oversee the iMac, G4/G5 Macs, the Titanium PowerBook and of course, the iPod. I don’t mean to say Rubenstein “did it all,” rather only that he was part of a great Apple team doing great things. Perhaps Jobs’ greatest strength is his ability to assemble a team of like-minded individuals and keep them focused. Rubenstein was a vital part of that team.

Some in the Apple community are critical of Rubenstein now, but he didn’t leave Apple for Palm. He left in April 2006. It was 18 months — in October 2007 — before he assumed the position at Palm. Why? Look back at when he took the Apple job. It was a company in trouble, with extreme challenges ahead. Who would argue Palm isn’t in a similar position? I can’t presume to speak for the man, but it’s no surprise to me he’d want to get back in the game after more than a year, and at a place where there was much work to do.

Time at Palm

In the time he’s been at Palm, Rubenstein has attempted to bring with him things learned at Apple. Quoting him from the interview link above:

“I worked with Steve [Jobs] for many years and learned a tremendous amount from him, the value of user experience and design — taste. I also learned the idea of great marketing…On the engineering side, I helped created the engineering culture at Apple so obviously, the engineering culture at Palm bears some similarities to it.”

It’s also interesting to hear Rubenstein speak of Palm. It’s not unlike how Jobs spoke of Apple during his first years back in Cupertino:

“We hired a lot of new people into the company,” says Rubenstein. “Palm is a new company today…Palm had tremendous assets. The DNA is there. The way of thinking about great products is there.”

Discussing Apple’s DNA, and thinking about great products, are all a part of the Jobs mantra.

The culmination of this was development of the Palm Pre. There are volumes of opinions and information on this device so I’m not getting into it here. It’s launching June 6 exclusively on Sprint, and in a few weeks we’ll know more about its prospects for success than we can learn from any criticism or praise we can read about it now. Still, the revelation that the Pre is seen as an iPod within iTunes is a big deal. One that brings up issues for both Palm and Apple.

Look! It’s an iPod!

Making the Pre appear as an iPod likely required inside knowledge Rubenstein possesses that other smartphone makers do not. It’s not this “leg up” on other smartphones I begrudge Palm, but rather the appearance they’ll have as being an “equal” in the iTunes environment. It’s not known for sure how Palm did this, but this is a very likely hypothesis. I think using an “entry” into iTunes learned at Apple is something Apple should have something to say about. I see it as the use of software to which you’re not permitted.

Yes, if the sync is limited to non-DRM music, videos and photos, a large part of the iTunes ecosystem is left behind. But that’s not what Palm would be trumpeting, nor the likely perception. Even the recent headlines are about how the Palm syncs smoothly with iTunes, appearing just like an iPod. I’m not sure Apple should allow this. I’d think they’d protect their ecosystem from any non-Apple devices that intrude on it. I think Apple should correct the issue via an iTunes update ASAP.

Get Ready for Apple Bashing

Of course, if Apple releases an iTunes patch to address this — and therefore “breaks” the Pre — there will be howls of protest. Apple should do it anyway.

I’ve managed enough Technical Support groups to know that by appearing as an iPod, Apple will get iTunes support questions about syncing with a Pre. Sure, they can say it’s not their hardware, go to Palm, etc., but then we’re in the world customers hate the most: that of one vendor pointing fingers at the other. The fact that one of the vendors entered uninvited and unsupported will not be taken into consideration by those critical of Apple.

And, let’s face it, Palm knows this is wrong. When asked about it, Rubenstein dodged the question. Twice:

How is Apple going to feel about that, asks Walt. Rubenstein dodges a bit, noting that there are a variety of ways of getting music out of iTunes. Walt pushes back, pointing out that this is the first non-Apple device that is recognized as an Apple device by a Mac. Rubenstein dodges again. Seems he’s pretty obviously using his Apple knowledge here. McNamee jumps in. Apple is “practically a monopolist,” he says, adding that people should be able to use music that they purchase in whatever way they see fit.

It isn’t just that Rubenstein avoided the question, but McNamee jumping in with the “M” word sealed the deal. Palm has no legitimate answer, and would rather imply Apple is a monopoly so Palm can do whatever they want. Yeah, that argument will get you far.

Where Does This Lead?

Though a bit underhanded, I won’t excoriate Rubenstein’s team for doing this. He knew of a non-iPod way into iTunes and used it. Maybe it’s a mistake by Apple; the exposure is there to begin with. However, I don’t agree with Palm’s decision; I think it’s more a deliberate PR stunt than anything else. Grab all the positive press they can about being an iPod, and then grab Apple-bashing press when (if?) Apple prevents it.

I certainly won’t excoriate Apple for blocking a Pre “iPod.” It’s what they should do. The sooner, the better. McNamee will complain, but given his statements on the Pre the last few months, that won’t be a surprise. Rubenstein might complain, but I think from his dodging the question above he expects it to happen.

Finally, this has nothing to do with what Apple thinks about the Pre — the device has miles to go before Apple will have trouble sleeping at night (though Microsoft might need a sleeping pill or two). Rather, it has everything to do with denying Palm a seat at the table to which they’re not entitled. Let the Pre use the old iTunes API, if possible, as others have, but not appear as an iPod. I don’t see why Apple should stand idly by while a third party walks in and acts as an equal member of the iPod/iTunes system.

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One of the nicest things about having an iPod or iPhone is the easy syncing with iTunes, especially for Mac users. In fact, it’s such a perk, that users are constantly looking for ways to get their BlackBerry and other devices to sync as well. How Palm’s upcoming Pre phone (which could be one of the most hyped in history) will stack up against the iPhone still isn’t perfectly clear, but as of today, we know one thing for sure: It will sync with iTunes seamlessly on a Mac.

And I don’t use the term “seamlessly” lightly. According to Fortune’s Apple 2.0 blog, once you plug your Pre into your Mac, iTunes will treat it just like an iPhone or an iPod, with the exception that it won’t work with Apple’s older, DRM-protected tracks. That’s as good a reason as any to finally get around to upgrading your tracks to “Pro,” though it won’t ease the sting of having to pay again for music you already bought.

The news comes direct from a Palm PR representative, who mentioned iTunes syncing in passing at Comdex in January. Confirmation has since come from many sources, since, as Apple 2.0 points out, there’s no shortage of Pre devices being tested live in the wild.

Unlike previous solutions for other Palm and BlackBerry devices, you won’t need any third-party software to encourage iTunes to recognize your Pre. The necessary code is apparently built right into the device’s firmware. As Apple 2.0 rightly points out, that isn’t surprising, considering the high percentage of ex-Cupertino employees the Pre has on its development team.

Apple is already on the defensive with Palm over the multi-touch capabilities of its new WebOS handset. During the last two quarterly financial results conference calls, Apple execs have suggested that once the Pre comes to market, if it looks like any of Apple’s multi-touch technology was purloined for its design, there will be legal action. Whether or not the Palm smartphone’s ability to sync with iTunes out of the box might also land the two companies in court isn’t clear, but at the very least, you can bet that future iterations of iTunes and/or OS X will try to restore the iPhone/iPod only limitation.

The Pre launches on June 6 (two days before the WWDC keynote) and will retail for $200 with a contract subsidy. Can’t wait to see the sparks fly, but I hope it doesn’t result in a nasty, distracting legal battle that impedes the exciting and innovative work both players are doing in the smartphone industry.

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In his “Palm Fights Back” article on CNN Money yesterday, Adam Lashinksy speaks glowingly of Palm and its imminent return to prominence with its so-called iPhone killer, the Palm Pre. He refers to Pre features that, he says, cannot be matched on the iPhone: “snazzy multitasking, universal search, a drop-down keyboard.”

I wonder if Lashinksy has heard about the next update to the iPhone’s OS that neatly addresses two of these three issues?

Push Notification Services might not be “true” multitasking, but then, the iPhone has proven background processes aren’t absolutely essential in a mobile computing device. PNS is a halfway house that provides some of the benefits of background processes without the performance and power overheads. For road warriors — Palm’s traditional customer base — battery life is everything, so we can only hope the Pre’s “snazzy” multitasking (I guess he’s referring to the card-based UI in the picture below) doesn’t have a detrimental effect on the machine’s power reserves.

It's a little late coming, but Push Notification Services provides a clever alternative to power-draining background processes

The Palm Pre uses a card-based UI for multi-tasking

So how about Universal Search? iPhone OS 3.0 has Spotlight functionality baked in. That’s another box checked.

As for a keyboard, that’s such a tired discussion we needn’t rake over old ground, except to say that either you can live with a software keyboard, or you can’t. If you can’t, you’ll never fully embrace any touch-based computer. And that’s a shame, because you’re missing out. But I guess if you’re committed to your plastic keys, the Pre offers something the iPhone never will.

Lashinksy adds that the Palm Pre is “undeniably cool” and muses that “if it’s as good as its previews suggest, [it] has the potential to shake up an already crowded and fast-growing industry.”

Shiny Things

Maybe it’s Palm’s recent share price surge (from a low of $3 before the Pre was announced, to a current healthy $12) that has him so impressed by this new device, but I suspect the novelty of a shiny, new toy has put a rosy glow on an otherwise not-particularly-compelling device.

I know, it’s shocking, right? Saying something negative about the Pre! I should be shot! But really, I am still trying to understand why people are so deeply excited about Palm’s new device. I’m not being negative — not really. “Practical,” even “cautious” is how I’d describe my attitude toward a device that has yet to be released. And I’m not the only one being cautious. While some journalists are excitedly declaring the Pre an “iPhone killer,” or talking dramatically about shaking markets, even Palm is taking a (mostly) measured view of its new product.

In a leaked copy of the company’s “Palm Pre Launch Guide,” and discussed in an article today on Wired.com, Palm declares in big, bright letters, “We Can’t Afford to Sell the Pre to the Wrong Customers.”

This is part of a tacit admission by Palm that the Pre cannot run native applications. Remember when the iPhone was launched, and we had to suffer the inelegant and halting-functionality of Web Apps? HTML, CSS, and a little smattering of Javascript were all we had to rely upon for what seemed an eternity. Well, same too for the Palm Pre.

What if you need to run a specific app on Palm’s golden child? Don’t worry, the Launch Guide has a solution:

Does your company have specific application requirements? Does your line of business require specific product features on mobile devices? If YES, then the Treo Pro is your best mobile device option.

Put another way — if you want apps, don’t buy a Pre, instead buy a phone Palm released back in August 2008. Way to show faith in your product and developer communities, Palm!

To be fair, Palm isn’t calling the Pre an iPhone killer — only lazy journalists are doing that — but in the company’s Launch Guide it does claim that the “Palm Pre Smokes the Competition.” Well, you have to be proud of your own kids, right?

By stark contrast, consider how the iPhone is so well-suited to both the standard domestic and business markets. Undoubtedly, the introduction of OS 2.0 and native apps indelibly stamped the Business Seal of Approval onto the iPhone, and sure, that didn’t happen from Day One. The take-home message? No device is born perfect, but with the right commitment from its designers and developers, it can be markedly improved. I expect this will be true for the Pre, just as it has been true for the iPhone since it launched in 2007. So the Pre will have a lot of catching up to do, and quickly, if it wants to claim an equal footing with the iPhone.

Palm’s device might suit casual users who don’t want to spend money on an iPhone (or join the AT&T network). But as we fast-approach the launch of iPhone OS 3.0 and higher capacity, faster-performing iPhones (and maybe lower prices), the as-yet unproven Palm Pre looks even less compelling when racked up against Apple’s more mature device.

The Pre might one day be an iPhone killer. So, too, might Windows Mobile. All they have to do is offer everything the iPhone offers and more — oh yes, and do it at a cheaper price-point than Apple. When that day arrives, that’s when we can take talk of iPhone killers seriously.

In the meantime, it’s actually something of a shame the Pre isn’t the ultimate device so many pundits are making it out to be. If it were, Apple’s upgrade path for the iPhone would be much shorter and more aggressive in order to stay ahead of the competition.

I’m really hoping the Palm Pre is a success — because then I won’t have to wait quite so long to get ever-smarter, cooler and more impressive iPhones.

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Rose described the upcoming feature, which he claims is definitely in iPhone 3.0, in his Diggnation podcast this past Sunday. The implementation sounds similar to the copy and paste we’ve already seen from MagicPad, which, you may recall, was the first individual, official app to bring copy and paste to the iPhone, though it was not platform-wide. Cutting, copying, and pasting will occur when you double-tap an insertion or selection point in text, which will bring up a magnified area. From there, you can drag to select an area to copy or cut, and choose from three buttons (Cut, Copy, Paste) to perform each action.

While Rose doesn’t go into detail about what other features will be included, a quick glance at the Pre’s specs can give us some clues. Looking at Gizmodo’s comparison, I find it hard to see what else Rose could be referring to with regards to other features Apple can introduce to bring the two devices more in line. Maybe tethering and stereo Bluetooth support, both of which would also be long overdue, and built-in multi-network instant messaging support?

What I’m more concerned with are the features he claims will be left out this time around. Aside from copy and paste, the three things he mentions as not being made available in iPhone 3.0 are arguably three of the most desired functions on anyone’s list. First, no background apps, which obviously doesn’t fit with the overall goal of beefing up the iPhone’s software to match the Pre, since this is one of the Pre’s biggest advantages. Also getting a miss this time around, according to Rose, are video recording and MMS. The latter is supported by the Palm Pre, though whether or not the forthcoming device will be able to handle video is not yet known.

I was very much looking forward to tomorrow, and I’m still interested, but Rose’s claims have taken the edge off of my excitement. If Apple shows up tomorrow with little else in hand besides copy and paste, which it should have included at the iPhone’s launch, then Palm’s upcoming device is going to look that much more fetching.

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