Analysts: time is right for Palm sale

“Rumors circulated late last week on Wall Street that Palm Inc. was putting itself up for sale, which one industry analyst said would be a good idea,” David Haskin reports for Computerworld.

“‘I think it would be a good thing if they were purchased,’ said Gartner Inc. analyst Ken Dulaney. ‘They’re doing well now, but they need more capital to do the things they need to do.’ The rumors late last week drove up the price of Palm stock. Palm spokeswoman Marlene Somsak said late Monday that the company does not comment on rumors and speculation,” Haskin reports.

Haskin reports, “Apple might benefit from acquiring Palm, [Dulaney] said. ‘What they’d get from Palm is carrier knowledge. But they’d have to pick up a whole OS.’ By that, he said he meant that Apple is getting into the phone business with its much-ballyhooed iPhone, based on Apple’s OS X, but some believe that the mobile phone business presents complications that Apple may not have considered.”

MacDailyNews Take: “Some” = Palm et al. Anyone who believes Apple has not considered all “complications” that the mobile phone business presents should send in their Special Olympics entry posthaste.

Haskin continues, “Also, Palm’s Windows Mobile Treos would not necessarily be a good addition, given Apple’s culture and traditional antipathy to Microsoft’s platform.”

MacDailyNews Take: Apple certainly does have a traditional antipathy to tasteless, counterintuitive, mediocre-and-worse products.

Haskin continues, “In any case, Dulaney said that now was a good time for Palm to be looking for a buyer. ‘It would be a good thing,’ he said. ‘They’re profitable and there are some positive things there that won’t be positive for all that long.'”

Full article here.

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34 Comments

  1. Yeah, burn, as in Burn in Hell.

    I think it’s just great that the MDN editors don’t have children who take a short bus to school. What great fortune. But is it really necessary to make fun of mentally handicapped in order to make your point? It just makes you look jerky.

  2. Palm sees the iPod take over 85% of the market, and decides it does not want to stick around to see the same thing happen to the phone market. Apple will not take 85% of course, but it is conceivable that they could take 20% at introduction of the iPhone, and that would be a big twinkie.

  3. After Apple announced the iPhone won’t ship until June and made no mention of PDA/productivity applications, I got a Treo 700p. Too bad. If Apple comes out with a comparable package with the iPhone, I’ll have to wait longer to get it. Of course, it’s also too bad it is Cingular only – as so many others have already said.

  4. “and there are some positive things there that won’t be positive for all that long.”

    translation: “Once the iPhone hits the market, Palm is toast.”

    The article is of course focusing on what’s best for Palm. If Apple were to buy Palm, it would be soooo very good for Palm. But buying Palm would bring nothing to Apple.

    Magic word: months — Palm has months to find a buyer before the death spiral begins.

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