Dell to Buy palmOne?

by Reads (3,808)

A report that alluded to anecdotal evidence that Dell may be interested in buying palmOne, has the PDA world in quite a stir.

Here’s the excerpt of their “Daily Sector Wrap:”

Information Technology: Nasdaq little changed, +0.35%. Dell (DELL $35.78 +1.3%) rose after Banc of America raised its rating to Buy from Neutral. DELL has started offering companies a zero interest lease for PCs. There were rumors floating around of a possible Dell takeover of PalmOne (PLMO $18.21 +12.5%), which is certainly feasible and a deal would create synergies for both companies.

The last sentence is interesting, claiming synergies for both. This would clearly be a bigger deal for palmOne than for Dell, where PDA sales are a small blip on their annual report. While palmOne certainly has a stronger hold in the global PDA marketplace, Dell’s Axim has done extremely well in its short lifetime.

Dell is certainly working on strategies, including new hardware, to get further into the corporate market where they already have extensive connections with their server, PC and notebook lines. I would chalk this one up to nothing more than posturing or casual conversations thus far. I doubt there’s really much substance behind this report.



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