Modern cellphones tend to fall into two categories: simple handhelds, which the majority of subscribers own, or smartphones, which verge on the functionality of laptops but are still prohibitively expensive for the average person. Palm co-founder Jeff Hawkins is now saying that its "third" product category, long in development, will have some initial details unveiled next week.

Speculation by the writers of Brighthand suggests that Palm may be venturing into UMPC territory, but with a special emphasis on connectivity, combining Wi-Fi and Bluetooth with cellular access. Other suggestions include a mini-tablet, a clamshell PDA, or possibly a direct competitor to the iPhone. The device could also be a candidate for Palm's new Linux-based OS, which is set to launch by the end of 2007.