The two companies are said to be in talks

Mar 2, 2007 09:27 GMT  ·  By

According to recent reports, Finish mobile phone manufacturer Nokia is in talks with Palm, and several analysts are expecting some type of buyout, which might prove to be a good thing for customers.

Several rumors surfaced recently, suggesting that Palm is in fact looking to be acquired, because of the company's need for extra capital and resources for a parent company.

Among other companies, Nokia was always considered a potential buyer. The news reports reveal that Palm has been in talks with several possible suitors and Nokia has emerged as a frontrunner for the acquisition.

Other previous reports suggested that Motorola also wanted to buy Palm. Palm is a very profitable company with increasing shares, but has sold less than expected in the previous quarters, mainly because of delaying the release of several products.

Palm also has some tough competition from Research in Motion and several other companies that have also gained some of Palm's marketshare. Nokia could also be considered one of Palm's rivals, with its E Series business phones.

Nokia's acquisition of Palm would in a way make sense because Palm could use Nokia's financial support and the Finish mobile phone manufacturer might have a lot to gain from Palm's expertise in devices for the business user.

Nokia is known to be using Symbian OS, of which it is a major owner, on its higher-end handsets, but has had a hard time selling the devices in several areas outside of Europe, like the US. Also, the Finish company has always insisted that its operating systems are better than the competition's. Bringing the Palm OS or Windows Mobile platform onto its lineup of phones would prove to be quite interesting but challenging at the same time.