This just showed up at Engadget. While it looks like laptops are just about to reach the size of the Foleo for just about the same price in the near future I can see too things happening. 1. Palm will, in 6 months to a year, be said to have been just too late with the Foleo or 2. Palm will be said to have been on the leading edge. Laptops are always going to get smaller and more powerful. If other devices with more power enter the market at much the same price as the Foleo it will be up to Palm and their knack at user interface/experience and ultimately usability (Simplicity - Zen of Palm) that will set them apart to succeed.
Palm must make the 'experience' a step (or two or three) above the competitors if they are going to not just introduce a 'new category' of device, but to 'the' market leader for this device category. If they do not get the software right, even if the new category of device is successful, we could see RIM or Nokia being the leaders in portable 'companion devices'.
Further details at engadget: http://www.engadget.com/2007/06/05/via-intros-nanobook-ultra-mobile-device-600-ultraportable-lap/
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