Fortune Magazine is saying that the Palm Pre syncs flawlessly with iTunes, except for DRM songs: It works exactly like the iPhone/iPod, which I guess means you get all your playlists and album art.

If it works like they claim, it'll be quite a clever and bold move for Palm. One of the main pilars of the iPhone/iPod strategy is their closed ecosystem and, if Palm has indeed managed to get into that chain smoothly, the Pre will be an even bigger threat to the iPhone than previously thought.

The fact that the Pre can't reproduce protected ACC songs is not really that important. Even taking aside the fact that most people have MP3 libraries, iTunes Plus is DRM-free. The only important "but" is if Apple decides to change something in iTunes to make impossible for the Pre to synchronize. Or maybe go the legal route and claim that Pam is somehow violating some kind of patent or DRM scheme.

In any case, this is a very interesting development that will bring some more heat into the Palm vs Apple fight. [Fortune]

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