Palm will try to get back into the smartphone race with a new mobile operating system, currently code-named "Nova", which they plan to reveal at CES 2009.
Palm hopes to grow and overtake the BlackBerry as the #2 platform behind the iPhone.
There's little chance that they can defeat Apple's iPhone at this point, but a decent showing and the right device could put them in a position to compete with RIM's BlackBerry.
The BlackBerry Storm, the first touch-screen BlackBerry, was met with sub-par reviews, but other BlackBerry devices have performed just fine.
It remains to be seen what direction Palm will take with the OS, but we'll be there at CES 2009 to find out.