HP Palm Deal In Progress

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CALIFORNIA (GaeaTimes.com)- In a recent development loss making Smartphone maker Palm Inc has been acquired by California based Computer Giant HP in a deal worth $1.2 billion. The industry experts feel that the deal is well timed and it will give it a chance to strengthen its position in the Smartphone market which is also being eyed by some of its rivals in the PC market. HP has a strong presence and solid global network in the PC market and it can use it for emerging a potent contender in the smart phone segment. The advantage is that it is getting Palm’s robust webOS ready for use in future devices and this will give it some extra mileage. Other mobile handsets makers have to depend on either Google Android or Microsoft Windows Mobile OS for their devices so far.

HP will also lock horns with rival Apple which has grabbed a sizable part of the smart phone segment with its popular iPhone. The industry experts predict the global Smartphone market to grow in excess of 35 percent this year and HP does not want to miss this opportunity to join the Smartphone bandwagon. Palm which earned name for being a handheld device maker has been steadily losing market to RIM an Apple in the last few years. Hence the deal with provide it a chance for revival.

HP has no plan to let the top level Palm executives leave the company. It is not known which carrier HP is going to choose after the acquisition is complete. AT&T and Verizon Wireless may be approached by it.