Hold the Phone, Dell Wants Palm?

[JMcEntegart]

Sometimes there’s nothing scarier than a buyout or merger.

Hold the Phone, Dell Wants Palm? : Read more

 

[Greg_77]

That is a scary merger. The combination is so strange, I can't even conceive what would happen. Dell tends to be chintzy, so the merger couldn't work unless they completely separated their business philosophy from Palms. Palm needs the be higher class(trendy), an identity Dell as been attempting to create for itself but rarely been successful. Maybe Dell will treat Palm like Alienware? This is just too strange of a combination.

 

[hellwig]

Eh, the same problem with Palm/Dell arises as with Dell/Phones. Palm and Dell are in completely different businesses.

Palm both designs the hardware AND writes the software for its handhelds. Dell does not design anything except their cases and keyboards. Dell assembles computers and provides support.

If Dell wants to move into the software/design market, buying Palm would be a good move. If Palm wants to stay alive in a world that is moving away from it's handhelds, merging with Dell could also be a smart move. I'm just wary of another AOL/Time Warner like merger, where similar but completely different companies think merging will give them a leg up, when in the end it just eats a lot of cash.

 

[radnor]

Extremely smart move if they did. For both Hellwig just said what can go wrong.

But if they were sucessfull in merging. Dell will have alot of IP to build from, and Palm would have a tremenduos market to sell to.

Now, pulling it off is another story.

 

[xenovic]

A merger like this would probably benefit both companies.

Dell is looking to get into the smart phone market, why not bring in a company that has made its business for years to make PDAs and then Smart Phones.

Palm on the other hand is struggling with having enough money to stay afloat. Even if the Pre sells really well they will need more time than many think they have to make the money they need from these sales. Dell has plenty of money to float Palm.

Another thing to consider is Palm's desire to have an app store for its Pre (and other WebOS devices). Dell stepping in could help to lend a great deal of credibility to this app store and bring in a great deal of business centric app developers.

To those who think its odd that Dell would want to go into Dell getting into cell phones because they're a "computer company..." Well, it worked for Apple. And really, both Dell and Palm have something in common here too, they are both competing with Apple for market share in their respective markets.

Sounds like a perfect fit to me.

 

[The Schnoz]

It would be in benefit to Palm's stockholders for Palm to wait until after Pre launches before a buy out is in order. So they'll wait. After news of a rumored buyout circulates, and the Pre launches to great success Palm's stock may go up too much for Dell to consider the buyout. At that point I'd consider a buyout unlikely. Dell is better off licensing Palms WebOS on their own phone if they really want it. However, I do think Dell should get into the phone market ASAP. I think our phones will eventually become our computers which will connect with monitors, keyboards, and other devices wirelessly when needed. The sooner the computer companies get in the cell phone market the sooner they will be taken seriously in that market. A Palm buy out would immediately give Dell the credibility they need and it might be worth it to Dell to pay top dollar for it. Also, even if Palm Pre succeeds at launch it will only be available on Sprint's network. The real money is when it launches on Verizon and AT&T. Dell would want to buy before that happens.

 

[hillarymakesmecry]

Message to PALM. Sprint is a terrible provider and it's going to hurt your sales of an otherwise promising device. If you release the pre with Verizon and compete with the Iphone on a real carrier you'll sell 25 times as many.

Sprint SUCKS!

 

[FlayerSlayer]

It would do Palm some good to have the increased capital, and it would do Dell good to have a larger and more diverse conglomeration, but I don't WANT it to happen for the simple reason that I love Palm (my old Tungsten and my current Treo never gave me problems and I look forward to buying a Pre) and I HATE Dell (for various reasons too detailed to go into here).

Here's a thought: Since Motorola discontinued the Q series of phones, and indeed all smart phone designs, they should sell the smartphone division of Motorola to Dell. The Q's were popular and reliable and no longer in production so it would be Moto selling something they don't want, and Dell buying something that consumers do want. Win/Win.

 

[Guest]

Sure Palm could benefit from the financial backing Dell can provide - and Dell would get instant access into the smartphone business (consumers and carriers) but hmm, I see a potential culture clash - what would happen to the Palm brandname? Would Dell maintain it? Would consumers buy into it? I just dont think Dell can away from medling into a business they have little experience in because it (and many others) sense that there are forces at play that are reshaping the smartphone market: new power-efficient CPU's and GPU's are becoming available, new carrier technologies also (LTE/4G), cloud computing... All this is creating an opportunity for a new class of portable devices that are not necessarily phone-centric (or carrier-centric to the dismay of wireless carriers I'm sure) - Android is an attempt to address this, and so is Pre (from very different angles). What's clear is that it will take a lot of marketing and technical effort to more clearly define this emerging consumer-centric ICT world - and it will likely require much more than what Palm can deliver on its own...

 

[a_fenderson]

It would be great: then Dell could update x86-BeOS and offer it as an alternative to Windows on their PCs.

 

[edayfan]

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