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  1.    #1  
    HI, I JUST FOUND THIS IN THE NY TIMES.

    Why Dell Canít Buy Palm
    By Saul Hansell
    There is no credible evidence, not even unsourced rumors, that Dell is trying to buy Palm. That hasnít stopped a bit of Web chatter, spurred in part by a report by a Collins Stewart analyst, Ashok Kumar, that that is exactly what Dell should do with the $1 billion it just raised selling bonds. (Palm has a market value of $1.9 billion.)

    Thereís even a certain logic to this. Dell has no handset business, while Palm has surprised the market with the elegance of its Pre smartphone and WebOS operating system. Palm is controlled by Elevation Partners, and venture backing always implies a company willing to sell at the right price.

    But there is something deeply wrong with the idea of Dell buying Palm. The two companies represent two equally valid but diametrically opposed visions of the computer business.

    Dell is built on the idea that a computer is a commodity. Up until only recently, it was the most efficient packager of Intel chips and Microsoft operating systems and the most effective distributor of these devices to big companies.

    The opposite of Dellís model, of course, is that of Apple and Palm. Apple often describes itself as a software company that makes its own hardware in order to control the environment on which its software runs. It serves a smaller, but more lucrative market of customers who want something distinct from commodity software on commodity platforms. Palm is taking the same approach with its Pre smartphone and WebOS software.

    For Dell to buy and profit from Palm, it would have to commit itself to being a software company first and foremost and to operate to maximize margin rather than maximizing volume. This is far more radical than its current attempts to add a bit of style to its line with fancy cases on commodity hardware, as it does with its Adamo line.

    Ultimately, I think great companies stand for something, and Dell very clearly stands for bringing the power of commodity computing power to both corporations and individuals. Any side affairs with sexy software will do little more than undercut what Dell represents.

    If you follow the PC business, you might be asking now about Hewlett-Packard. H.P. is doing better than Dell. And the company fancies itself as more than the worldís largest packager of Intel chips into cheap boxes. The company talks of innovative technology, exclusive software and artfully designed cases. Iíve never been convinced that any of this is much more than window dressing so long as the key features of H.P.ís products are defined by Microsoft.

    In that sense, H.P. wants to be Apple, but it has the business of Dell. In that muddled context, Palm might better fit in there.
    Please Support Research into Fibromyalgia, Chronic Pain and Spinal Injuries. If You Suffer from These, Consider Joining or Better Yet Forming a Support Group. No One Should Suffer from the Burden of Chronic Pain, Jay M. S. Founder, Leesburg Fibromyalgia/Resources Group
  2.    #2  
    Analyst suggests Dell might buy Palm
    By Kirk Ladendorf | Friday, June 12, 2009, 10:29 AM

    Financial analysts are speculating this week about what company or companies Dell Inc. might buy with its big wad of cash, which is about $10 billion and growing.

    Several analysts think Dell will go after companies involved in computer storage, services or software to bolster its offerings for large and small corporate customers.

    But Ashok Kumar, with Collins Stewart, said he thinks Dell should go after Palm Inc., the maker of handheld computers and smart phones that has been in decline for some time.

    Here is Kumar’s thinking: Dell already made a sizeable bet in storage when it paid $1.4 billion for EqualLogic in 2007.

    On services, Kumar doubts that Dell could make an acquisition that would overcome its disadvantage with IBM and Hewlett-Packard, which have broader offerings in that area.

    But portable clients could be a huge growth opportunity, Kumar said. “The converged (phone and computer) device arena is shaping up to be a land grab and Dell has a window to capture mind-share via Palm,” he said.

    Despite sagging sales and a $648 million loss in its first nine months of the current fiscal year, Palm has several positive attributes. It has solid established relationships with established carriers, including Sprint and Verizon, and it has a promising new product in the just-launched Pre smartphone.

    Dell could give Palm the financial and other resources that it needs to become a far stronger player in the smart phone space, while it gives Dell an stake in the fastest growing part of client computing.

    “This acquisition will be born of mutual necessity and represents a strategic fit for both parties,” Kumar said.

    Dell executives have said they’re willing to make acquisitions but have not commented on any recent reports that a deal might be coming in the next several months.
    Please Support Research into Fibromyalgia, Chronic Pain and Spinal Injuries. If You Suffer from These, Consider Joining or Better Yet Forming a Support Group. No One Should Suffer from the Burden of Chronic Pain, Jay M. S. Founder, Leesburg Fibromyalgia/Resources Group
  3.    #3  
    Dear Dell: Buy Palm
    By Stefan Constantinescu on Thursday, June 11th, 2009 at 8:33 AM PST
    In Dell, Palm, Web OS
    Take a look at the top 5 PC vendors today:

    HP with 20.5%
    Dell with 13.6%
    Acer with 11.6%
    Lenovo (OTCPK: LNVGY) with 7%
    Toshiba (OTCPK: TOSBF) with 5.4%
    These numbers come from IDC who says that in the first quarter of this year: 63.5 million computers shipped. HP has the iPaq, Acer purchased E-TEN in March 2008, Lenovo makes devices in China and Toshiba already makes Windows Mobile smartphones. Dell is the only top 5 PC manufacturer to not have a mobile unit. Dell has the knowledge; once upon a time they had a product line known as the Axim. These devices were not smartphones since they didn’t have any cellular radios inside, but they ran Pocket PC, which is now called Windows Mobile. Their last model was the X51 (pictured above) and the flagship version had a 3.7 inch VGA display with 16 million colors, VGA out with a special cabled, 802.11b (WiFi), Bluetooth 1.2 and IR. Impressive for when it shipped in September 2005.

    The Wall Street Journal is reporting that Dell is looking to buy someone. They have $9 billion in their cash reserves and recently sold another $1 billion in bonds. They even hired someone from IBM’s mergers and acquisitions department. Sadly people who have spoken to Dell’s Chief Financial Officer, Brian Gladden, are saying that the company plans to “expand its data-storage and tech-services businesses.”

    Palm (NSDQ: PALM) has a market cap of $1.8 billion right now, and you figure they want to sell the company for close to twice that, so you’re looking at around $3.5 billion. Dell can do it, but will they is another matter all together. For reference: Seagate, who makes hard drives, has a market cap of $4.7 billion and Western Digital, who does the same thing, is worth $5.61 billion.

    The benefits are clear to both parties. Dell can bundle smartphones with the shipment of new laptops. The relationships Palm has with operators could be used to start selling 3G enabled netbooks. Dell can give Palm the money they need to keep making awesome products. Palm can build a smartbook running webOS (Foleo II) and have Dell sell it all over the world. Dell could get some of the designers over from Palm to make their computers that look less ugly. Palm could teach Dell a thing or two about marketing, not to mention to fact that the new CEO of Palm saved Apple (NSDQ: AAPL) with the iMac and also worked on the iPod!

    The likelihood of this happening is slim to none and I don’t even know why I’m writing this when I could be outside throwing a Frisbee around with my friends.
    Please Support Research into Fibromyalgia, Chronic Pain and Spinal Injuries. If You Suffer from These, Consider Joining or Better Yet Forming a Support Group. No One Should Suffer from the Burden of Chronic Pain, Jay M. S. Founder, Leesburg Fibromyalgia/Resources Group

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