HTC ruled out as Palm buyer, Lenovo seen likely
updated 08:25 am EDT, Fri April 23, 2010
Palm running out of possible buyer candidates
A source Friday morning has hinted that HTC has turned down the possibility of buying Palm. The insider claimed that Palm had approached HTC with an offer but was turned down after HTC reviewed Palm's finances and decided to pass. There "weren't enough synergies" in costs or elsewhere to take the deal ahead, the Reuters contact said.
Some other companies in the region have also been ruled out, as Huawei has reportedly turned down an acquisition while ZTE hasn't been given an offer.
Most now see Lenovo as the most likely candidate for buying Palm. The PC giant has made a pattern of competing in North America by taking over struggling companies and is best known for buying all of IBM's non-server PC business, leading to better success for the ThinkPad and other brands. It has been looking to expand its smartphone plans outside of China and would get not just an immediate footprint but its own mobile OS if it bought Palm.
Lenovo CEO Yang Yuanqing has opted against commenting on the prospects of taking over Palm.
The Pre designer's market share in the US has been dramatically reduced since the iPhone and later Android replaced Palm as the preferred American smartphone platforms. It has tried to remain independent, but following drastically reduced sales, has said it would be open to a buyer even as it prepared to survive on its own.
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Joined: Apr 2001
Make Sense
Unlike HTC, Lenovo has no smartphone business and has no commitment to any smartphone OS. HTC wouldn't want Palm's actual phones and they are already heavily invested in both Android and Windows Phone 7. Having to also support a third OS on their phones isn't something they want. They're already pretty busy with all of the programming work they have to do with Android.
Lenovo, on the other hand, has no smart phone and no commitments to any smart phone platform. Lenovo would be getting what some feel is the best smart phone operating system, and two already approved FCC phones. Lenovo could take over Palm on a Monday, and have Lenovo phones out on Tuesday.
Smartphone operating systems are moving off phones and onto "Slate" computers. The iPad has lead the way, and quite a few Android based slates are in the pipeline. Palm's WebOS gives Lenovo more than just another smartphone OS. It gives them an operating system for Lenovo's slate computers and what maybe the basis of the OS for desktops.
Unlike the earlier Mac/Windows war, a single operating system will not dominate. The Mac's resurgence has as much to do with the expansion of the Internet as Job's marketing skills. In the old days, Macs couldn't run Windows programs that many people felt they needed. Now, thanks to the Web, people are more interested in web based applications and sites. The operating system is no longer as significant as it once was. In fact, Google's ChromeOS based computers will have no local apps. And, any WebKit based browser -- like those found on the iPhone, Android, and WebOS will run any "app" that ChromeOS can.
The fit is pretty goold. Palm will give Lenovo an excellent platform that will become the basis of Lenovo's future hardware. Meanwhile, Lenovo's marketing skills and commitment will give the Palm phones something that Palm itself is unable to provide. Palm under Lenovo will become a strong platform.