Shares in Palm shot up 36 per cent on Friday in reaction to its new Pre smartphone and WebOS.

According to Reuters, the Pre also impacted shares in US operator partner Sprint, which rose three per cent.

There's feeling among analysts that the Pre and subsequent devices based on WebOS will enable Palm to claw back market share it has lost the likes of Apple and RIM.

Avian Securities analyst Avi Cohen said: "Our initial reaction to the new Palm Web OS and Palm Pre smartphone is decidedly positive. [The new product appears] elegant, intuitive, sufficiently differentiated, and... a legitimate competitor to the iPhone."