Palm canceled the smartphone companion Foleo just before it shipped.

Palm announced the Foleo on May 30th. I already wrote a piece the next day that Foleo is a boring product. Back then the highly anticipated and low-cost Asus EEE had not even been announced.

Palm says on its corporate blog that the company is now focusing on their next generation platform and the first smartphones that will bring this platform to market.
They also continue the Windows Mobile platform.

In my opinion the company needs to drop Palm OS. I see only the three desktop operating systems on smartphones in the future: Linux, Windows and Mac OS. It is all about seamless interoperation between PC and smartphone and consistency of the user interface across devices in a system of your choice.

More detials on the Palm blog.