Palm differentiates itself in the smartphone market?

Digital Daily quotes Vivek Arya:

In a note to clients today, Bank of America/Merrill Lynch analyst Vivek Arya said Palm (PALM) is well-poised for growth in 2010. “Despite increasing smartphone competition, Palm can maintain differentiation and remains well-positioned to launch its products with multiple new Tier-1 carriers in early 2010 by which time it should have a robust apps catalog,” Arya wrote. “While we expect the stock to remain volatile, the recent sell-off creates an interesting buying opportunity, in our opinion, for a company with an attractive platform, selling into a high-growth market, and at a compelling valuation.”

What “differentiation” is Vivek talking about? In the Apps market? Touchscreen? Sprint? Quality? iTunes sync? Retail experience?