Feeds

PalmOne shares soar on Dell purchase rumour

What's in it for the vendor?

  • alert
  • submit to reddit

Top three mobile application threats

PalmOne's shares jumped 12.5 per cent yesterday to $18.21 on the back of rumours that the company has become a Dell acquisition target.

It's certainly a possible course of action - Dell has the funds and the stock to make it happen. That said, it's not been a particularly acquisitive company in the past, though Michael Dell has never ruled out the possibility of buying other firms if there's a suitable fit.

Would that apply to PalmOne? Dell certainly has a stake in the PDA business and offers its own Axim series of Windows Mobile-based devices. Before the advent of Axim, back when PalmOne was simply Palm Dell used to sell its machines. Having dropped them to make way for Axim, would Dell now want them back?

Since that time, PalmOne has acquired Handspring, and so now comes with added smart phone expertise, along with the industry connections necessary to operate in that sector. Dell might well have an eye on that part of the business rather than PalmOne's pure-play PDA operation, which could at least be offered as an alternative to the Axim PocketPC line in much the same way it offers Linux alongside Windows.

But the highly vendor-specific nature of the mobile phone market goes totally against Dell's core sell direct model, and if it's really interested in offering Palm OS machines as well as PocketPCs, why doesn't in just license the Palm OS like everyone else - or, rather, partner with a Far Eastern licensee ODM who can make Dell-branded Palm-based PDAs.

That approach works for Axim, and it could easily work for a Palm OS-based product line. All PalmOne really offers a brandname, and Dell already has one of those. Dell, in short, does not need PalmOne, and that fact has to call into question any claim that it's interested in buying the company.

Add to that the fact that world PDA sales are declining, and you have to wonder why Dell would be investing sufficient time and money in the sector to simply for the privilege of selling more devices than HP. ®

Related stories

Review: PalmOne Zire 72
Review: Dell Axim x3i
PalmOne updates consumer PDAs
World PDA shipments plunge
PalmOne, HP slog it out over Euro sales
PDA, smartphone sales rocket in Europe

Combat fraud and increase customer satisfaction

More from The Register

next story
Virgin Media so, so SORRY for turning spam fire-hose on its punters
Hundreds of emails flood inboxes thanks to gaffe
A black box for your SUITCASE: Now your lost luggage can phone home – quite literally
Breakfast in London, lunch in NYC, and your clothes in Peru
AT&T dangles gigabit broadband plans over 100 US cities
So soon after a mulled Google Fiber expansion, fancy that
AT&T threatens to pull out of FCC wireless auctions over purchase limits
Company wants ability to buy more spectrum space in auction
Google looks to LTE and Wi-Fi to help it lube YouTube tubes
Bandwidth hogger needs tube embiggenment if it's to succeed
Turnbull gave NBN Co NO RULES to plan blackspot upgrades
NBN Co faces huge future Telstra bills and reduces fibre footprint
NBN Co plans fibre-to-the-basement blitz to beat cherry-pickers
Heading off at the pass operation given same priority as blackspot fixing
NBN Co in 'broadband kit we tested worked' STUNNER
Announcement of VDSL trial is not proof of concept for fibre-to-the-node
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
SANS - Survey on application security programs
In this whitepaper learn about the state of application security programs and practices of 488 surveyed respondents, and discover how mature and effective these programs are.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.