“Cannacord analyst Peter Misek said Tuesday he’d ‘recently learned’ AT&T would delay launching the two Palm handsets due to what he said was a ‘long list of technical issues’ with the smartphones,” Sutherland writes. “Ehud Gelblum of Morgan Stanley, said Tuesday he believes Palm’s only hope is to close its manufacturing and license the webOS. However, others see Palm as a ripe target for acquisition, notably either Google or Apple.”
Sutherland writes, “Apple has said Palm could be on its short list of companies likely sued for patent infringement claims. Although Palm would unlikely be able to finance a defense, “Google could buy a law firm and not even notice the drop in its bank account,” Sherman said. Apple could also buy Palm to deny Google that legal cushion.”
Full article here.
MacDailyNews Take: Here’s what we wrote over 14 months ago: Apple could buy Palm this afternoon with petty cash. In fact, maybe that’s what Palm and Elevation Partners – and Wall Street speculators – are really shooting for: a buyout by Apple or some other company. Apple would buy Palm in order to absorb a would-be competitor and/or gain access to certain patents and technologies and/or to prevent another company from making the acquisition. – MacDailyNews, January 9, 2009
For $5 million and no more, then yes.
The marketplace has certainly provided evidence over the last 14 months that Apple doesn’t need any patents or technologies that Palm may have in order to dominate and expand the market for smartphones. For the same reasons, Apple would not care if another competitor has them.
So, there is absolutely no reason for Apple to purchase Palm.
So does anyone know what worthwhile patents Palm may own?
They absolutely should buy Palm to obtain the patents.
They should also specify that all former Apple employees in management roles either have their stock cancelled or turned in without financial reward- and that they have no job in the new company.
Buying a competitor to kill it is a MSFT strategy, not Apple’s.
It’s been reported that Google has no smartphone patents and thus is in a weak position when it comes to lawsuits. Apple should snatch up Palm’s patents just to prevent Google from obtaining them. But Apple shouldn’t buy all of Palm — just the patents. Apple doesn’t want or need the headaches of supporting existing Palm users.
Palm would be worth an acquisition if Google weren’t also in the market. If Google were to acquire them, they would certainly be worth having Apple go on the offensive.
Apple managed to build pretty decent handset without any of Palm’s IP. Let Google overpay for them, then sue their dicks into the dirt.
But but but…..G4’s attack of the show gave the Palm Pre Plus a 5 out of 5. Though mainly because it is like under $50 now.
The only thing to buy Palm for is maybe the card interface the WebOS uses (and any patents they own or have applied for in this regard) and just to tank the whole WebOS thing.
The real battle is going to be between Microsoft and Google’s Android.
Strange idea! What for?
From my understanding, PALM still has some valuable patents. Apple may consider buying PALM just for those.
Should Apple buy Palm? In a word: no. In two words: @#$% NO!
Like MacSmiley said, Apple is not in the business of buying out competition just to eliminate a competitor.
No synergy with Palm. Netflix makes more sense.
@ Sarasota (& others floating the patent idea) – I doubt Palm’s patents are anywhere valuable enough to justify buying ALL OF PALM just for that. That’s like buying a toxic waste dump because there may be a small diamond buried somewhere in the middle of it.
Would that be rich.
Buy Palm and then send the managment packing again. Although with fat wallets!
A win for both parties.
Why would anyone buy Palm now?
Wait a year and save 3 or 4 million.
Apple could pull a Microsoft and acquire Palm just to kill it.
Apple isn’t Microsoft.
Microsoft may buy Palm, just to kill it. Google may buy Palm just to kill it, and to acquire the ability to say it owns some applicable patented technology.
If Apple were to buy Palm, it would have a strategy for the company and it’s technology.
Lots of speculation about the need to buy Palm, most centering on Palm’s patents and the defensive nature of such an acquisition.
I’m sure the DOJ would have something to say about that. Although Apple’s and Palm’s current relative sizes to the whole of the market is still fairly small, (WinMobile, Blackberry OS, Symbian, Android), given the iPhone’s meteoric rise the DOJ could rule the acquisition as anti-competitive, and deny it to go forward.
If they did it would be a tacit acknowledgement of the iPhone’s technological lead in the market.
Yes they should, I don’t know why they wouldn’t , come on , apple ,
Apple buys Palm. Steve Jobs FIRES Jon Rubinstein… Cost of the purchase, according to a karma relaxed Jobs, “Priceless”!
Heck! I will buy Palm just after I win $45 million on the Euro Lottery.
Let’s take a peek at stock prices:
Apple (AAPL) – 225.28
Palm (PALM) – 5.39
I gotta say, it would at least be cheap to buy, eh? Other than the fact that they could do it with petty cash, there is really no reason for them to do so. Let Hasbro buy them and make the Pre more sturdy.
Love that my “MDN Magic Word” for this post is “problems”
Buying Palm would be a waste of money. At the very most, Apple might want to purchase some patents to enable future product diversification. However, as the iPhone proves, the technology that Apple already controls is amongst the leaders in the marketplace. Buying a laggard would force Apple to:
– waste cash better used for new product development
– waste management attention as it winds down production/licensing/employment/facilities at Palm
– waste Apple resources supporting legacy Palm products
– waste opportunities to attract new customers to the Apple brand with discounted close-out Palm sales
Not a good plan. I’d rather see Apple buy Dell.
They could buy the patent portfolio from palm for $300M and license them back to palm, on a non-transferable license. It would give palm more time (more rope) to work with.
Keep the money for keeping GOOG at bay. There you have a viable threat; a clear and present danger. Palm is, and has been a failing irritation, nothing more. It would just be a distraction and a costly winding down.
It will be cheaper to buy Palm than let their patents fall into the hands of some patent troll that will file in the Eastern District of Texas against Apple over some imagined IP violation.
Palm has some interesting patents including the IP from the old Be OS, which had some good stuff in it.