According to a report by PalmInfoCenter, Palm is rumored to be working on an update to the Palm Centro that will run the new Palm webOS. The Palm Centro has been a major success for the company selling millions of units. They reference a snippet from PCMag speculates that a candybar form factor without a QWERTY keyboard could be in the works.

The current Palm product line is based upon three operating systems:

• Palm Pre: webOS
• Palm Treo: Windows Mobile Professional
• Palm Centro: Palm OS

The legacy Palm OS has served the company well, but it would certainly make sense for the company to transition those users to the new webOS. From a support standpoint alone, Palm could focus on support just two platforms. One of the reasons for the Centro’s success has been the price. If they were to develop a low-cost entry level Centro running webOS, it would sell in droves.