Fallout: HP and Palm

We reported to you yesterday that HP is to acquire Palm, and although this deal will be great for both parties there will be some fallout from the deal – more so with Asian competitors. A number of Asian companies tried to buy Palm, even HTC, but all they wanted different things from Palm.

HTC wanted Palm’s intellectual property, which they then would have used against Apple. Google would have lost out in this deal though as HTC could have then offered webOS instead of Android OS. This did not happen and HTC will continue to favor Android OS.

Lenovo have been trying to get a foothold in the handset market, but it is no secret that Palm’s hardware technology is not as god as it could be. This would have been a headache for Lenovo.

HP was one deal that we did not see coming, but it does make sense. We know that Hewlett Packard has sold cell phones for years, but they have never been able to make an impact on the market.

However, all that could change – with HP hardware technology and Palm’s webOS, we could very well see a shift in the smartphone market. And then there is the prospect of a webOS version of the HP slate, which you can read more about in our recent post.

More on this story can be found on Forbes



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