HP’s Palm purchase: the analysis

HP seems to be buying a route into the mobile phone market with its purchase of Palm, but it could also plan to emulate Apple's strategy with tablets and other media devices Was it a good idea for Hewlett-Packard, the world's biggest computer company, to buy Palm – which now specialises in mobile phones – for $1.2bn? The initial response from analysts has been as mixed as you'd expect – see the comments from Forrester, Gartner, IDC, Informa, and Ovum below – but almost everything depends on what HP intends to do with its new company. At one extreme, the takeover could just involve a change from a Palm that's struggling in the smartphone business to a Palm with the cash (and the resulting market confidence) to create a successful smartphone business. That's IDC's basic view

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HP's Palm purchase: the analysis