As expected, Palm yesterday unveiled its new mobile operating system (OS) and introduced a touchscreen phone, moves that have been deemed crucial to the company’s survival. Palm debuted the Palm Web OS, which it has been developing since 2007. In a statement, Palm declared that the new OS “is a brand-new kind of platform, invented exclusively for mobile use.” Meanwhile, the company also launched the ‘Pre’ smartphone, a touchscreen device based on the new platform that features GPS, WiFi and a slide-out full keyboard. It will be available exclusively via US operator Sprint in the first half of this year. Pricing details have not yet been announced.

Palm has been losing market share to smartphone rivals such as Apple and Research In Motion (RIM), and last month reported its sixth straight quarterly loss. Losses in its fiscal second-quarter (ended 28 November) widened to US$506.2 million from US$8.85 million a year earlier, while revenue fell 45 percent to US$191.6 million. Palm recently received a further US$100 million cash injection from its largest shareholder – the private equity firm Elevation Partners – to offset fears of falling sales at the company. Analysts warn that this week’s announcements could be the company’s last chance. “If they don’t execute, somebody’s going to buy them,” JPMorgan analyst Paul Coster told Reuters.