As expected, one-time smartphone leader Palm Inc has bowed to the inevitable and announced it will be shedding jobs as demand for its products slows.

The maker of the Treo and Centro devices said it would be losing an undisclosed number of jobs from its 1,050-strong workforce starting next week.

Business plans

Although it has a not-quite-secret new OS and phone due for release next year, Palm has suffered in the marketplace as both the BlackBerry range and the iPhone have grown in popularity.

While more than three quarters of businesses plan to equip their staff with RIM Blackberries and almost one quarter plan on using Apple's iPhone, Palm's equivalent number is around five per cent at the time of writing.