Analysts believe Dell should acquire Palm

Analysts believe Dell should acquire Palm

Dell is the only major personal computer maker which is not present in the mobile device market.

Palm is struggling to survive in the market but they do have a hot new product coming up – Palm Pre.

Reports in the media claims that Dell has been working on some smartphone models.

Rumors claim that the prototypes developed by Dell were practically rejected by the mobile carriers in the US market for being uninteresting.

Market analysts believe that this is the right time for Dell to make a move for Palm. Palm has been posting losses and it is not yet clear when the Palm Pre is going to be launched.

If the Pre fails for Palm, they are going to be in deep trouble and we could lose a potential challenger to the current market leaders.

Financial strategy consultant Sramana Mitra had this to say: “Palm cannot take on Apple on its own, and a Palm-Dell union would change the equation dramatically.”

Yankee Group analyst Carl Howe said: “Palm is vulnerable and Dell has cash. A merger sounds like a good idea.”

Kevin Burden, an analyst at ABI Research added: “Dell buying Palm still makes a lot of sense, since Dell stands to benefit the most by acquiring it.”