Analyst Michael Walkley of Piper Jaffray says Palm stands to lose most from iPhone's grand entrance into the smartphone market. Walkley told Barons

“With the BlackBerry Curve ramping and iPhone launching June 29th at AT&T, we view Treo as the most impacted by these launches and anticipate even further declines in sell through trends.”

Palm has enough problems on its hand dealing with an obsolete mobile platform and products that are equally outdated. To make matters wose, the company made a failed bet on a brain-dead Linux portable that it hoped would spark significant sales growth, which isn't going to happen.

Palm is running out of cash and ideas. Unless the company can pull a breakthrough product out of its hat soon, they won't be in this market much longer.