In case you missed it in the news a while back, Palm announced that they were going to be releasing the Foleo smartphone companion, which would be a small $500 laptop that syncs directly to the Treo in real time. They thought it would be the ideal companion to the Treo, since it is relatively small, starts instantly (no booting up) and doesn't take any time to sync with the Treo.
But instead of saying "wow, that's awesome, when can I get one," the vast majority of spectators either laughed or cringed. It's a phone accessory that costs more than the phone? It's a laptop that doesn't run 90% of the applications people want to run on their laptop, but costs the same as an entry level Dell? It doesn't give you any functionality that the old fold-out keyboards and is five times as expensive and five times as bulky? And you're spending all that money on this instead of investing in raising the bar on the Treo to blow that upstart "revolutionary" iPhone out of the water? These are just a few of the questions that were asked. Also, not uncommonly, "have you lost your frikkin' minds?"
Well, Palm may have had a brief bout of temporary insanity, but they have not completely lost their minds. They're admitting that it would take a huge chunk of change to make the Foleo into something to be proud of, and have the good sense to realize that they'd be much better served investing that money into the existing Treo platform. So they're giving the Foleo the axe.
This means that they've blown $10 million that could have been spent on a next-generation Treo, and fallen a few months behind in reclaiming their "coolest smartphone ever" title from Apple. But at least they're admitting their mistake and changing course before it's too late.