Nokia To Buy Palm

There are strong rumors of Nokia‘s  interest in buying Palm. This boosted Palm’s shares by 8% on Friday with nine times volume increase above average.

The acquisition will help Nokia Palm regain lost share in recent months about Apple and RIM, but it would cost at least 2,000 million dollars only in buying.

Nokia is still by far the world’s leading producer of mobile phones. However, it has lost good amount

of market share and bloated at the moment could not overcome the release of smart phones (smartphones) as the Apple iPhone, or compete with RIM’s professional models, especially in the United States.

The acquisition of Palm after his successful return to the forefront of mobile handsets with new models and com Pre WebOS operating system would be more direct formula for Nokia to catch up.

Land-based lost market share declines from 41 to 35 percent in just three months, accompanied by final financial report disappointing and that has made its first negative result in decade.

Would Palm be interested in cooperation with Nokia? Probably yes. Especially to complement its high-end U.S. and the Finnish giant also be prepared for the multitude of models with Android that are about to hit the market. Can he do it? It is less clear, Nokia would have to spend over 2,000 million dollars in such an acquisition and good amount added marketing and distribution.