Palm done playing with iTunes, for now

The latest version of Palm’s mobile WebOS is now available, but it doesn’t contain a feature that was left out due to controversy with rival Apple, possibly concluding a heated battle between the two mobile phone manufacturers.

The latest WebOS update no longer includes an option that allows phone owners to sync their devices with iTunes, with the struggling company finally abandoning the fight.

Specifically, Palm and Apple have battled for months over a conflict related to the Palm Pre’s ability to sync directly to iTunes without any additional software.  The company issued a public warning that claimed iTunes isn’t designed to be synchronized with “non-Apple digital media players,” before living up to the threat of kicking those devices out of iTunes.

The controversy stems from Palm tricking iTunes into seeing the smartphone as an iPod MP3 player, which allows phone owners to sync it to a PC and easily transfer files.  Once Apple discovered the iTunes bypass, it offered an iTunes software update that stopped the smartphone from being picked up as an iPod.

Palm is banking on its WebOS powered Pre and Pixi devices to help the company stay relevant in the smartphone market, but finding a compromise with Apple may be an important step forward.  It’s possible that Palm may have to do what Research In Motion did; develop its own custom software so that the phone is able to successfully sync with Apple’s software.

The latest WebOS version includes the ability to watch YouTube videos in widescreen, chat using Yahoo’s IM program, and several other interactive updates.

I’m sure both companies could work something out in the future, but it depends if Apple and Palm officials can leave behind an issue that has dragged on for several months.