I ended my recent post about Palm and Ti…

I ended my recent post about Palm and TiVo with a warning for Apple not to rest on its laurels where the iPhone is concerned; it will lose market share if it’s not significantly updated. I can now say that Apple does not intend to let that happen. You’ve probably already heard about the announcement of version 4.0 of the iPhone OS, which will add a bunch of new features like multitasking, app folders, custom backgrounds, a new e-mail app, and hundreds of other enhancements. (Alas, the multitasking will not work on my iPhone 3G. But I knew I was making a compromise when I chose not to buy the 3GS.)

It appears that Apple is updating the hardware as well. There’s been no announcement, but the folks at Gizmodo got their hands on a prototype next-generation iPhone that was accidentally left in a bar in Redwood City, CA (I swear I’m not making this up), and they disassembled and analyzed it. It has a front-facing video chat camera in addition to the improved rear-facing camera (which has a flash!), an improved display, and possibly noise cancellation.

So I think it’s safe to say that Apple is not going to be complacent about the iPhone. It may still lose market share to Android or other competitors, but not without a fight.

Speaking of competitors, Palm has put itself up for sale. HTC and Lenovo are said to be interested acquiring it. Some observers think it would make sense for RIM (the Blackberry folks) or Motorola to purchase it, but that’s just speculation at this point. Dell has reportedly looked into the idea and decided against it. Palm has been a wholly-owned subsidiary before (first U.S. Robotics, then 3Com), so perhaps the company’s story isn’t over yet.

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