Analyst: Nokia and Palm a match made in smartphone heaven | webOS Nation

Analyst: Nokia and Palm a match made in smartphone heaven

by Derek Kessler Fri, 04 Dec 2009 6:25 pm EST


It’s been a little while since we’ve seen an analyst comment on the nonexistent acquision of Palm by Nokia, but Brian Blair of Wedge Partners has come to our rescue with a piece on why Nokia should buy Palm. His points mirror our own thoughts on the front of where it would make sense: Palm needs money, Nokia has money; Nokia needs a good OS, Palm has a good OS.

In an ideal world it could very well be a match made in heaven, but there are still some things to consider. Namely, those things are the hundreds of millions of dollars that Nokia has invested in Symbian S60 and Maemo. Clearly, Nokia has settled on Maemo as their operating system of choice for the future, even if it lacks some of the polish and functionality of webOS. It’s also worth noting that while Nokia may be a small player in the US smartphone market, they’re still the dominant force in the global smartphone market.

Nokia and Palm do need each other, but both companies are committed to doing things their way and alone at that. Thus far, every acquisition Nokia has made was not to either enhance their current strategy, or to expand into a new market. Purchasing Palm would do neither - it would replace or compete with their current strategy. Nokia has enough problems competing with their own products, that’s why they’re cutting their 2010 product line in half, adding Palm to the fold would only compound the inter-company competition. Let’s as General Motors how well that works, shall we?

For as much sense as a Nokia to buy Palm, there are just too many complications for it to actually happen.