Palm shares sink after Apple boots Pre moocher from iTunes

Apple Online Store “Shares of Palm Inc. fell more than 3 percent on Thursday after Apple Inc. closed a loophole in iTunes that had allowed the music management software to be synchronized with Palm’s Pre phone,” Franklin Paul reports for Reuters.

“On Wednesday, Apple released an update to iTunes — which complements the iPod and iPhone devices — meant to fix software bugs and [also] ‘addresses an issue with verification of Apple devices,'” Paul reports. “‘It also disables devices falsely pretending to be iPods, including the Palm Pre. As we’ve said before, newer versions of Apple’s iTunes software may no longer provide syncing functionality with unsupported digital media players,’ said Apple spokesman Tom Neumayr.”

Paul reports, “Analyst Shaw Wu of Kaufman Bros. said he was not surprised by Apple’s move, which he said was ‘the right thing’ to do to protect its intellectual property. ‘The last thing Apple needs is someone having access to its hard-earned technology for free,’ he said in a note to clients. ‘We view this as a modest negative for Palm as syncing with iTunes was a feature that was touted and we think could impact some customers’ decisions.'”

Full article here.

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