HP To Buy Palm for $1.2 Billion
Although they weren’t mentioned in any of the rumors I had heard, HP has announced they will buy Palm for $1.2 billion. It makes sense, in a way, as HP would probably love not having to depend on Microsoft for an OS for mobile and tablet devices.
Palm stock price headed for $0?
As I’ve mentioned before, I was a Palm user from way back but when it became time to replace my Treo, I ended up with a Droid. For me it made sense because Palm’s new WebOS was not compatible with its older PalmOS and if I was going to make the break, I wanted to go with the platform that looked like it would be around in a couple of years. But I had no idea how poorly Palm was really doing. In retrospect it was a smart move on my part, even if I felt a little funny about making it.
Palm’s new phones seem to be pretty good but no one is buying them. At this stage, Palm’s only chance for survival is being purchased. Apple would be a natural fit, given the genesis of the original company, but Microsoft has also been mentioned. But why would either buy Palm? Apple is happy with it’s iPhone and Microsoft’s new Windows Phone 7 is probably too far along to need much of a technology infusion. The irony is that Palm may have survived too long, had it failed sooner it might have made for a much more attractive package.
Withered Palm
I know I keep posting these, but the damage at Palm is worse than even I expected. I’d hesitate to call them a “one hit wonder” but you have to admit no Palm device made as big a splash as the first one did.
It’s tough being the first one in a particular market. You start with 100% market share and watch it decrease as competitors figure out how to make something similar. Your only defense is to keep coming out with the “next big thing”. Maybe it was the constant ownership changes, but Palm pursued a more evolutionary approach, when they could be said to have any approach at all, and it got them to where they are now. Let that be the cautionary tale.




