Palm said it will stop developing new phones running Windows Mobile software, instead focusing future development on its new WebOS operating system.

The news came as the struggling handset maker reported widening losses for the quarter during which it started selling the new Palm Pre, the first device to run WebOS.

Losses for its first quarter reached US$164.5 million, compared with a loss of $41.9 million in the same period last year.

Nevertheless, the results beat analyst expectations. Adjusted sales were $360.7 million, better than the $297.7 million anticipated by analysts polled by Thomson Reuters.

In the future, Palm plans to focus solely on WebOS rather than developing phones that run operating systems from other vendors like Microsoft. "While there are still Centros and Treos moving through the channel, our future engineering efforts are based around WebOS," Rubinstein said. The Centro runs Palm OS, Palm's previous operating system, and the Treo runs Windows.

More: http://pcworld.com/article/172200/

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