Palm launched its bid to come back from the dead with a new smartphone and operating system to rival the iPhone and the BlackBerry.

The success of the new Palm Pre and the operating system may determine the company's long-term survival in a market it defined with its early innovative products.

Palm showed off the Pre device and the software at the Consumer Electronics Show in Las Vegas. The phone has a touch screen and a slide-out qwerty keyboard and has wi-fi connectivity and GPS software.

Chief Executive Officer Ed Colligan said making mobile phones was in the company's DNA: "This will redefine how people use smartphones."

News that Palm was scheduling a press conference at CES jolted Palm shares, which spiked significantly in anticipation that the oft-delayed new software was finally on its way.

Palm has decided not to used other mobile operating systems such as Windows Mobile or Android and spent several years creating their own called Palm Web OS. The company hopes developers will create applications for the new platform.

The new Palm Pre will come with 8GB of storage and a multi-touch 3.1inch colour screen. There is also a 3-megapixel camera and a speaker. It will be available initially in the US in the first half of this year.

Palm introduced the Palm Pilot in 1996, developing a category of devices called personal digital assistants. Those products evolved into smart phones by adding wireless features, and Palm's Treo was a success in that market. But then the BlackBerry overtook Palm by winning over users of corporate email. Sales of Apple's iPhone, released in 2007, also eclipsed those of the Treo.

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