China Economic News Service reports that Palm has ordered 5 million Windows Mobile smartphones from Compal. The devices will not only be manufactured by Compal, but also designed by them. This indicated a resumption of Palm outsourcing both design and engineering of their smartphones, presumably to let them concentrate better on their PalmOS II project.
The news however also indicates strong confidence by Palm in the future of their Windows Mobile offerings. Palm’s usual total smartphone shipments, including their palmOS products , have only been around 3.2 million for the Financial Year ending June 2008, and of course this period has been dominated by their very successful POS Centro product.
Compal will also be manufacturing Windows Mobile devices for Motorola, who under economic pressure, has also resumed outsourcing their production.
Read the original report here.