A few hours ago, Palm introduced their new “mobile companion,” the Foleo, during a live video webcast. Here’s a brief spec list, courtesy of the official press release:

• One-button access to full-screen email
• Instant on, instant off
• Rapid access to various applications
• 10-inch screen and full-size keyboard
• Web search and browsing via Bluetooth or Wi-Fi
• Editors for Word, Excel and PowerPoint, plus a PDF viewer
• Compact, stylish design that fits on an airline tray table
• Lightweight at 2.5 pounds
• Fast, simple and intuitive navigation
• 5-hour battery life
• Linux OS for easy application development

The Foleo will cost $499 under a special introductory offer (after a $100 rebate). And Palm promises it will be available this summer (June to September in the US).

Still About the Software

At first glance, it’s easy to dismiss the Foleo as a laptop with limited features. After all, Palm bills it as a supplement, providing a smartphone (like the Treo) with a big screen and keyboard to handle email and attachments. Some laptops are as portable, cost the same, also exchange data with smartphones, yet provide more functionality. So what is Palm thinking?

Over the years, Palm has always focused on user-friendliness and software. A reason why Palm OS gadgets are still relevant (despite steadily losing market share to younger players like HTC and Windows Mobile) is because their gadgets, while not cutting-edge, are reliable, intuitive and ergonomic. The thousands of applications made for the Palm OS show that with a little bit of imagination and programming genius, so many things are possible.

Palm probably knows that the Foleo’s capabilities are currently limited; they’re hoping that third-party developers will make new software and add more features. Ultimately, the success of the “mobile companion” depends on how much consumer demand it can generate, to entice the creation of new applications to attract more buyers. Out of the box, the Foleo can work with Microsoft Office documents and surf the web.

It’s a chicken-and-egg problem, no doubt about it. People will get a new product only if it has the software they need, while developers will only create software when enough people need it. But that’s normal for companies trying to push a new kind of product on the market.

Is it Worth It?

Nevertheless, it’s an uphill battle for Palm. I don’t know if their focus on software and intuitiveness will continue to work for a market that’s becoming more obsessed with performance, hardware capabilities, portability and cost. It’s interesting to note that the Foleo will be the biggest product ever released by Palm, and I don’t see people spending $499 for something they probably already have.

I honestly think the “mobile companion” label was cooked up to disguise Palm’s true intentions: to take their OS and push it as a new mainstream mobile computing platform. To actually present an alternative to your usual laptops. That’s because the new Palm OS (powered by Linux) is much more powerful than its predecessor. But, to avoid alienating their core customers, Palm tied the Foleo in with existing products. Unfortunately, this kind of positioning presents the Foleo as an expensive add-on that shows Palm as out-of-touch.

Last year, Palm adopted a new marketing credo: The future of personal computing is mobile computing. Will the Foleo help Palm fulfill this vision?