Tuesday, September 22, 2009

Nokia Buying Palm?

In the category of rumors we cannot substantiate, but that the Silicon Valley Business Journal is reporting, Nokia is rumored to be considering buying Palm. It's clear why the deal would make sense. Nokia is the global leader in devices sold, but it lags in the key smart phone category, which is the fastest-growing device category as overall mobile handset sales are slowing.

The other angle is that Nokia's entire product line at the moment is based on Symbian. Palm would give Nokia not only a second operating system option, but also an operating system that has gotten favorable reviews for its social networking features and support for use of multiple simultaneous applications.

Another angle is that, though dominating global sales, Nokia is a laggard in the U.S. market. Palm would help in that regard. Palm also would benefit from Nokia's global marketing machine, as well.

Recently there has been some contraction of support for multiple operating systems. Motorola has decided to support Android, while Palm recently decided to drop its support for Microsoft Mobile. Nokia would be going the other way if it buys Palm.

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