Let M(n) be a compact submanifold of a sphere with parallel mean curva
ture vector h. We introduce a tensor phi, related to h and the second
fundamental form, and show that if phi satisfies a certain inequality,
then phi=0 and M(n) is totally umbilic or equality holds. The estimat
e is sharp in the sense that we describe all M(n) that satisfy this eq
uality.