Palm WebOS Development Conference in December 2009

Created by hasan.kamal under Palm Pre

Working overtime to push their smartphone OS into the open market, Palm has decided to organize a conference in December 2009 in an effort to lure developers to its platform and begin developing apps to market on their Open Catalog e-commerce program. A key development of this conference will ultimately be how Palm decides to charge developers and provide a business structure acceptable to all parties concerned. Palm has stated that,

“(It) will offer developers choices for getting their applications to market, as well as a transparency into the process that will help them promote and grow their businesses.” – eWeek

Previously the apps offered at the store were free, however, realizing that the iPhone OS along with Android and RIM’s BlackBerry OS were quickly gaining ground over webOS; Palm decided to increase its marketing and get support for webOS. Currently, Palm’s store had apps for free in their app store, which was a reason for some of the excellent home-brew apps that were available to customers. Secondly, Palm’s strategic decision seems to be changing; currently the webOS was only available on the Pre and the Pixi. Unfortunately the problem with luring developers now is that the profitability factor of the Pre is compromised.

Already Apple has created a competitive situation where it has successfully captured a number of developers. By allowing developers to keep 70% of the profit margin by taking a 30% royalty along with a $99 developer fee, Apple has created a very strong incentive for developers to move to their platform – (Source). Since the success of the app along with the overall marketing push of the app is from the developer side, most of the work is done by the developer and by letting developers retain profits; they market their app themselves. Currently, Nokia, RIM, Symbian, Qualcomm all charge heavily for developers to access their OSs’ and SDKs’; in comparison to the structure offered by Apple, they are rather draconian in nature.

Apple’s commitment to quality is reflected via the total control they exercise over the submission and review of apps. Not only do they maintain a standard for apps, but similar to any licensing authority, they have the ability to screen out potentially malicious developers who could exploit the iPhone SDK and OS. In retrospect, this is probably why there have been very few security breaches on the iPhone while other developers have used financial clout to screen developers. Although in the long run, it will become difficult to screen what could be potentially millions of apps, it will at least ensure that apps available for download are safe.

Coming back to Palm, they are in a key situation where they can clearly see how draconian approaches will result in poor support for webOS or could help lure developers away from a fairly crowded market into a lucrative business venture. This is dependent on two things:

1. Palm creating a development program that provides a similar incentive to Apple’s program while streamlining the overall development process,

2. Marketing the Pre more aggressively and ensuring that consumers start to realize the full potential of the phone.

Although the Pre is exclusive to Sprint’s network, recently Verizon and Google have teamed up to launch Android compatible phones on Verizon’s network. The Pre has some serious competition now in terms of AT&T’s and iPhone alliance along with the Google-Verizon collaboration. It seems like that the Palm team is at a crossroads, a careful long-term strategic decision here can definitely change the path of the Pre and Palm’s profitability or it could doom the Pre to the depths of obscurity.

What do you think? Will Palm emulate Apple’s current market structure or will it follow the routes of RIM, Symbian and Nokia? Leave your thoughts and comments below.