Palm sells one-millionth Centro

SAN FRANCISCO, March 31 (Reuters) - Smartphone maker Palm Inc (PALM.O: Quote, Profile, Research) said on Monday it has sold the one-millionth unit of its inexpensive Centro phone since the smartphone's launch last September.

Priced at $99, the Centro sells in 10 countries, including Germany, Spain, Singapore and India. In the United States, the Centro is available with carriers Sprint Nextel Corp (S.N: Quote, Profile, Research) and AT&T Inc (T.N: Quote, Profile, Research).

Palm, an early seller of the smartphone, has faced stiff competition recently from rivals Research In Motion Ltd (RIM.TO: Quote, Profile, Research), which makes the BlackBerry and Apple Inc (AAPL.O: Quote, Profile, Research), which makes the iPhone.

The Centro, which costs about one-fourth of the iPhone's $399 price tag, has reached more young adults and women than any previous smartphone Palm sold, the company said in a statement. The Centro also reaches three times as many customers with a household income of under $75,000, Palm said, indicating the phone's mass appeal.

Smartphones accounted for 11 percent of all mobile phone sales last year and sales are expected to increase to 35 percent by 2011, Palm said.

Palm shares closed Monday's session up 2 percent at $5.00 on the Nasdaq. (Reporting Anupreeta Das; Editing by Andre Grenon)