Will Nokia Acquire Palm?

March 2, 2007 – 1:19 pm

If you're new here, you may want to subscribe to our RSS feed. Thanks for visiting Planet Cell Phone!

Could the next big move for Nokia be to acquire PALM as an extension of their mobile and converging device sector?

Word on Wall Street about a possible takeover has lifted PALM’s stock over 27% in the last month.

Sunnyvale, Calif.-based Palm is increasingly viewed as a takeover target because of its smaller size in a market where competition is rapidly increasing. Palm felt the squeeze in its most recent fiscal second quarter, when revenue fell almost 12% and the vendor issued a weaker sales forecast.

As the market for smartphones increases, there’s more competition among manufacturers like Nokia, Palm and Blackberry to sell even slicker looking converging devices that serve as cameras, music players and offer a plethora of other features.

I can’t say that the absorption of Palm into a much bigger company would be surprising since telecom companies seem to morph more and more each day. Nokia might be able to carry the brand further than Palm can and increase their own sales and market share, so it could be a win-win situation for both companies.

Are you surprised to hear that Palm might be a takeover play?

Resource

If you enjoyed this post, grab the Planet Cell Phone Full RSS feed!