Wireless Intelligence estimates the global cellular market exceeded 2 billion subscribers this Fall, up from 1 billion in 2002. GSM technology serves 78 percent of those users; reason enough for Palm to get a GSM Treo out as soon as possible.

Earnings
Palm's quarterly results far exceeded expectations.

It grew revenue ($444.6 million for this year - $4 million ahead of forecasts - to $376.1 million the same period last year) by 18 percent year-over-year with earnings of $24.4 million or 47 cents a share. While the 47 cents is lower than the 53 cents per share a year ago, it beat estimates by four cents.

The handheld pioneer's revenues have now grown 10 percent every quarter for the past couple of years.

"Achieving the eighth consecutive quarter of year-over-year double-digit revenue growth and growing our converged device market share to 36 percent in the United States are significant accomplishments," according to Colligan.

Treos are the best selling smartphones in the U.S.

Smartphones continue to account for an ever increasing piece of Palm's business, with over a million Treos shipped during the last two fiscal quarters—602,000 last quarter alone. That's just shy of the number of Treos Palm shipped in all of fiscal year 2005.

Palm's smartly playing to its strengths by releasing four new smartphone models next year.