Network already has Apple's iPhone and move would strengthen its position in UK smartphone market
American gadget group Palm will next week confirm that it has signed a deal with O2 which will see the mobile phone network become the exclusive UK partner for its eagerly awaited Palm Pre handset.
The Pre, which went on sale in the US last month, has been tipped as the most viable alternative yet produced to the iPhone. The new version of the Apple device – the iPhone 3GS – went on sale less than two weeks ago and a million were snapped up in the first three days.
O2 already has an exclusive deal with Apple to stock the iPhone and grabbing the Palm Pre is likely to further cement its position as the UK's largest mobile phone network. Reports of a tie-up between Palm and O2 first appeared in May and Carphone Warehouse is also expected to stock the Pre.
O2 is believed to have seen off fierce competition for the device from Orange, which it also beat to the iPhone at the last minute.
Analysts reckon that Palm has already sold more than 300,000 Pre devices in the US alon
after two weeks full time with a Pre while traveling in US, I'm convinced that I don't want to upgrade to iPhone 3GS 32GB for £485 today or even £275 in December when eligible for O2 upgrade. I'm going to hold out for Palm Pre or perhaps HTC Hero - hopefully both will come to Vodafone by January 2010.