Palm. Despite the fact that palm sold 689,000 Treos in the first quarter of 2007, a 21 percent increase from the previous year, Palm is struggling to remain a major player in the smartphone market amid the success of the Blackberry and the iPhone. The competition with the iPhone is especially fierce since AT&T is the phone srevice provider for both products. palm introduced its Centro in October 2007 as a low-cost strategy to increase market share. Although the Centro sells for $99, it does not have all of the features of the iPhone. But costconscious consumers may choose it over the iPhone given the iPhone's $399 price tag.