Why beleaguered Palm’s headed for a buyout – by RIM

Apple Online Store “Given Palm’s recent earnings and desperate cash position, it’s clear the company is heading for a spectacular failure,” Saad Fazil writes for VentureBeat.

“Can Palm turn itself around by raising more cash and tweaking its strategy? I say no,” Fazil writes. “The only promise for Palm’s future is a buyout. And the only buyer that makes sense is BlackBerry maker Research In Motion.”

“RIM was the undisputed leader in the smartphone market a couple of years ago. It now faces significant threats from iPhone and Android. Its touchscreen models like the Storm paled in comparison to Apple’s iPhone and Google’s Nexus One. Despite being an integrated solution, RIM has allowed its devices and OS to become fragmented. Developers not only have to account for several different versions of hardware (keyboard, touchscreen, different sizes etc.), but they also face the challenge of making sure their apps run on most or all different OS versions,” Fazil writes. “As a result, BlackBerry’s applications marketplace is struggling to compete with Apple’s App Store or Google’s Android Market. And RIM’s hopes of modernizing its OS are weakening day by day.”

Fazil writes, “Despite its weaknesses, RIM is still in a strong position, and it’s not too late to stop the downward trend.”

Full article here.

MacDailyNews Take: Over 14 months ago we wrote: “Palm’s Pre dog and pony show is nothing more than takeover bait. They simply do not have the resources necessary to create another mobile platform, especially one that is superfluous. If Palm’s Pre is not a ruse, then those responsible are kidding themselves.” – MacDailyNews Take, January 21, 2009, just after beleaguered Palm unveiled their Palm Pre and webOS.

29 Comments

  1. Kind of reminds me of two turds circling the toilet bowl on their way down the drain… the bigger turd is going to buyout the smaller turd? There both going to end up in the sewer eventually anyway… who cares!!

  2. The PalmOS is apparently good, but the hardware was only half-baked and not powerful enough. Also, Palm’s Intellectual Property portfolio is fairly extensive and can could protect RIM from IP litigation in the future.

  3. So, he’s saying to solve RIM’s fragmented problem they should introduce webOS (yet another format) into the mix?

    Or is he saying dump everything RIM has and go webOS?

  4. Why not, Rimm’s owner has money burning a hole in his pocket after the NHL decided not to let him buy my beloved Arizona Coyotes.

    Besides, picking up Palm for a fraction of what he was willing to pay for our hockey team, is the smarter move, at least Palm has some intellectual property.

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  5. No, Blackberry will continue on its current path for a while, since sales are still very strong, and they are addressing their biggest weakness, their browser by incorporating a WebKit based one. So, no change for BB, until it’s too late.

  6. From what I know (which ain’t much), WebOS is a much more modern OS than what RIM currently has, yet switching to a brand new OS is never something to be taken lightly.

    If they would provide free WebOS app replacements to current RIM customers, that might help, but they would still have to rejigger their entire server setup to work with the Palm OS.

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