Some of you may recall back in May when Palm announced their Linux-based notebook that was designed to be extremely portable and disk-less. Countless Palm fans were excited for the launch of Foleo which featured a 10-inch screen, a full-sized keyboard, and would connect wirelessly with your Palm smartphone. While there were plenty of fans, there were those like Engadget who just two weeks ago, wrote an open letter to Palm and suggested that they “stop wasting money on the Foleo – we all know it isn’t going anywhere.” As it turns out, Palm must have realized it wasn’t going anywhere anytime soon, and so they’ve canceled the Foleo.

In the announcement, Ed Colligan, Palm’s CEO says “Because we were nearly at the point for shipping Foleo, this was a very tough decision. Yet I am convinced this is the right thing to do. Foleo is based on second platform and a separate development environment, and we need to focus our efforts on one platform.” While Palm is ditching the Foleo, their CEO did promise that a Foleo II would be coming at some point in the future, although he didn’t give any indication of when that would be. It would be based on the new platform he mentioned that they’re currently focusing all of their efforts on.

All I can say is that I really feel for the team who put all of the time and effort into developing the Foleo, only to watch all of their work go out the door so close to launch. That’s got to be a huge disappointment for them. And the fact that Palm just tossed out $10 million for this failed project has got to sting! I believe Palm has a rough road ahead as they compete with the BlackBerry and the iPhone. Hopefully their new platform will give them the boost that they need to get back into the game.