Palm has canceled the Linux-based Foleo mobile companion, CEO Ed Colligan announced today on the company's blog. Colligan said the move would cost the company $10 million in earnings, but allow it to focus on a single Linux smartphone development platform going forward.

Contrary to recent rumors, it's not Palm's first Linux smartphone, and no, it's not a competitor to Nokia's Linux-based N800 Internet Tablet. Rather, Palm today unveiled the Foleo, which it's calling a 'new class' of mobile device.

Palm's Linux-powered Foleo has potential, but only if Palm can stop denying that the device is actually laptop, reckons Sascha Segan of Gearlog. Palm has positioned the Foleo as a "mobile companion" for itinerant workers needing only email, document prep, and PowerPoint capabilities.

Ahh, poor Palm. Sure, they have their fancy new WebOS toys -- but it wasn't that long ago they were banking on the Foleo changing the mobile world as we knew it. Sadly, they were just a little too early.

Open source project Amarok, in an open letter to Palm, has invited the company to work with them. The reason: the Apple iTunes 8.2.1 update guarantees that the Linux-based Palm Pre smartphone can no longer use the iTunes music management software.

Verizon Wireless announced Jan. 25 availability of two modified versions of Palm's WebOS-based smartphones, the Palm Pre Plus and the newly WiFi-enabled Palm Pixi Plus. Meanwhile, Palm announced that its WebOS developer program is now open to all developers, and plans to launch a WebOS plugin development kit, says eWEEK.

Two prolific open web standards advocates at Mozilla are leaving the non-profit foundation for Palm, vowing to spread their developer-centric gospel to the smartphone maker's webOS platform. Ajaxian.com co-founders Dion Almaer and Ben Galbraith have accepted new positions helming Palm's developer relations team. The duo announced their change of venue on their blogs this Friday.

Independent programmers in the community recently achieved Palm's goal of running Linux on Palm devices. Linux is an alternative interface to Palm and Windows Mobile operating systems, which allows you to control and navigate basic Palm device functions.

Palm announced its WebOS Linux platform yesterday, along with a smartphone to run it. To be sold by Sprint in the first half of 2009, the 3G-enabled Palm Pre features a slide-out keyboard, WiFi, GPS, 3-megapixel camera, 3.1-inch touchscreen, and Palm's homegrown "WebOS" Linux phone stack.